Archive for December 2012

Top Stories of 2012 in Foreclosure

December 31, 2012

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This year was undoubtedly one of the most noteworthy in the default servicing industry. As 2012 comes to a close, join us as we look back at the year that was and the Foreclosure-related stories that were most read and left the biggest impact.

Fannie and Freddie Set Timeline Requirements for Short Sales – 4/17/12

Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.

To read the complete article please Cilck Here.

B of A to Offer Principal Reductions of More than $100K – 3/12/12

Some Bank of America borrowers may be in for principal reductions in amounts exceeding $100,000, according to the latest developments in the settlement the bank and four other large servicers made with state and federal regulators.

To read the complete article please Cilck Here.

RealtyTrac Names 10 Best Beach Towns to Buy Foreclosures – 6/25/12

Looking for a beach home? Perhaps not, but according to a report released by RealtyTrac, certain beach towns offer sizeable discounts that make vacation dream homes seem a little bit more accessible. Using home sales prices for distressed properties in the first quarter of 2012, the real estate database company ranked the top 10 beach towns to buy foreclosures in its June 2012 Foreclosure News Report.

To read the complete article please Cilck Here.

CitiMortgage to Launch Home Rental Program as Foreclosure Alternative – 8/8/12

CitiMortgage announced the launch of the Home Rental Program, a program designed to provide an alternative to foreclosure and allow eligible borrowers to stay in their homes.

To read the complete article please Cilck Here.

Statement by HUD Secretary Shaun Donovan on the Senate’s Confirmation of FHA Commissioner Carol Galante

December 31, 2012

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I got this in an email today.

“Today, the United States Senate took the important step of confirming Carol Galante to become the next Assistant Secretary for Housing and Commissioner of the Federal Housing Administration (FHA). I am pleased that a bipartisan majority in the Senate agreed that Carol offers responsible leadership at a time when we are pursuing necessary reforms to stabilize FHA’s financial outlook.

“Under Carol’s stewardship as Acting Assistant Secretary and Federal Housing Commissioner, HUD launched and integrated the Office of Risk Management and Regulatory Affairs into the Office of Housing.   In addition, she has worked to expand housing opportunities for elderly and disabled residents and launched HUD’s new Office of Housing Counseling.  Further, Carol directed FHA insurance programs, through which HUD provided critical liquidity in the market while balancing two core missions – preserving affordable mortgage financing options for underserved borrowers and protecting our still-fragile housing recovery.

“I want to express my deep gratitude to members of the Senate who appreciate the combination of fiscal prudence and public purpose that Carol brings to this important post at this most critical time.  Carol and I look forward to continuing to work with the Congress in the effort to strengthen FHA for future generations of American homeowners.”

LPS: Delinquencies Increase Slightly, Foreclosure Inventory Shrinks

December 30, 2012

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The FHA Condos Approval Company, Inc.

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Lender Processing Services, Inc. (LPS) offered an early look into delinquency and foreclosure trends for November.

The data provider found the delinquency rate increased slightly to 7.12 percent from 7.03 percent in October, representing a 1.2 percent increase.

Compared to November 2011, the delinquency rate has fallen by 9.06 percent.

The foreclosure pre-sale inventory rate decreased to 3.51 percent, with inventory falling monthly and yearly by 2.84 percent and 16.42 percent, respectively.

The number of properties past due, or properties 30 days or more delinquent or in foreclosure, totaled 5,350,000. Of that figure, 1,767,000 were in foreclosure presale inventory, while 1,584,000 were days or more past due.

To read the complete article please use the link below.

Delinquencies Increase Slightly

OCC: Mortgage Peformance Improves in Q3, Fewer Initiated Foreclosures

December 30, 2012

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In the third quarter of this year, the overall percentage of mortgages that managed to stay current improved from last year, but declined slThe report covered 58 percent of all first-lien mortgages in the country.

The OCC revealed 88.6 percent of mortgages were current and performing by the end of Q3, a slight decrease from 88.7 percent in Q2, and an improvement from 88 percent last year.

The agency explained factors such as strengthening economic conditions, servicing transfers, and the ongoing impact of loan modification programs and home forfeiture actions led to the year-over-year improvement.

The percentage of mortgages past due by 30 to 59 days increased to 3.1 percent, which is 10.4 percent higher than Q2 and a 3.6 percent increase from a year ago.

The percentage of seriously delinquent mortgages fell 10.8 percent from last year, but was unchanged from Q2 at 4.4 percent.

Foreclosure activity, according to the report, “remains elevated,” but fewer properties entered the foreclosure process.

ightly quarter-over-quarter, according to a report from the Office of the Comptroller of the Currency (OCC).

In Q3, servicers initiated 252,604 new foreclosures, representing a quarterly and yearly decrease of 16.5 percent 27.4 percent, respectively.

The number of mortgages in the foreclosure process fell to 1,158,289, down 6.4 percent from the previous quarter and 12.6 percent from last year. Completed foreclosures increased to 114,742, up 12.8 percent from Q2 and up 1.3 percent increase from a year ago.

Servicers also continued to stave off foreclosures through solutions such as modifications. In Q3, more home retention actions were applied compared with home forfeiture actions (foreclosure sales, short sales, and deeds-in-lieu), with servicers implementing 382,899 home retention actions compared to 180,309 home forfeiture actions. However, home retention actions were down 8.9 percent from Q2 and 16.6 percent decrease from a year ago, while home forfeiture actions were up 7.7 percent from Q2 and 4 percent from last year.

To read the complete article please use the link below.

Mortgage Peformance Improves

Survey: Optimism for Home Values Grows in Q4

December 30, 2012

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Optimism among both real estate professionals and homeowners regarding home values is rising, according to a nationwide survey by HomeGain, a website that offers free, instant home values.

Sixty-five percent of real estate professionals say home values will increase over the next six months, according to HomeGain’s fourth-quarter survey. The third-quarter survey found 51 percent of professionals shared this optimistic view.

The year-over-year increase in positive outlook was even greater. A year ago, just 15 percent of professionals responding to HomeGain’s survey said home values would rise over the following six months.

Optimism is not as high among homeowners, 39 percent of whom say home values will rise over the next six months. This is up from 34 percent in the previous quarter.

Eleven percent of real estate professionals believe home values will decrease, while 24 percent believe home values will stay the same over the next six months.

About 26 percent of homeowners believe home values will decrease over the next six months, and the remaining 41 percent believe home values will remain unchanged.

The outlook for the next two years is even more optimistic than the outlook for the next six months – both from real estate professionals and from homeowners.

Seventy-nine percent of real estate professionals anticipate rising home values over the next two years, and 62 percent of homeowners agree.

Only 11 percent of professionals and 17 percent of homeowners harbor a negative outlook for home values over the next two years, according to HomeGain.

To read the complete article please use the link below.

Optimism for Home Values

Report: Price Gains Driven by Composition Changes, Not Appreciation

December 30, 2012

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After tracking home price trends in 25 metropolitan statistical areas (MSAs), Radar Logic found prices in October are now 6.9 percent higher than a year ago, according to the company’s RPX Composite price.

“However, this increase was driven by a change in the composition of sales rather than price appreciation,” Radar Logic stated in a recent report.

Upon closer scrutiny, the analytics company explained the price increase is mainly the result of a decrease in distressed sales, or “motivated sales,” and the actual price increase for “non-motivated sales” is much smaller than the overall yearly gain.

For example, the report points out that as of October, 23 of the 25 MSAs saw a decline in sales of foreclosures and REOs. And, motivated sales represented just 13 percent of all sales in the 25 MSAs, down from 24 percent a year ago. In addition, motivated sales were priced 32 percent lower than non-motivated sales in the 25 metros.

“The decline in relatively low-priced motivated sales as a percentage of total sales has put upward pressure on RPX prices for many MSAs, as well as the RPX Composite,” the report explained.

While the composite follows trends in just 25 MSAs, Radar Logic says it suspects the same holds true for most major housing indexes.

When non-motivated sales are observed separately from motivated sales, Radar Logic found “prices in such sales have not increased nearly as much as the aggregate figures suggest.”

For non-motivated sales, prices increased 2.7 percent during the same time period, less than half of the overall RPX composite, the report noted.

However, Radar Logic added that non-motivated sales actually include short sales, so increasing short sales can bring down the overall price of non-motivated sales since short sales also sell at a discount.

To read the complete article please use the link below.

Price Gains Driven by Composition Changes

Home Prices Continue Steady Climb Through Off-Season

December 25, 2012

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The price of housing going up is great news for our economy but I wonder how the lack of inventory in a lot of areas will affect the market. I think the rise could be due to a lack of houses for sale.

Read the article and let me know what you think.

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The winter season has not stopped home prices from posting both monthly and yearly gains, according to recent reports, and the Federal Finance Housing Agency’s(FHFA) October home price report was no different.

According to the agency’s Home Price Index (HPI), home prices in October rose 0.5 percent from September and 5.6 percent from October 2011. The index current sits 15.7 percent below the April 2007 peak.

Among the nine census divisions, seven saw monthly price gains, with the Pacific (Hawaii, Alaska, Washington, Oregon, California) leading with a 2 percent gain.

In the Middle Atlantic (New York, New Jersey, Pennsylvania) and New England ((Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut), home prices fell 1.3 percent and 0.3 percent, respectively.

To read the complete article please use the link below.

Home Prices Continue Steady Climb