Notices of Default, the first stage in the foreclosure process, were down 4% in the quarter ending March 2010 in California from the previous quarter according to a news report in today's San Francisco Chronicle.
The decrease is attributed to efforts by the federal government to increase the number of loan modifications for distresssed borrowers as well as some mortgage lenders working to facilitate their short sale processes.
Trustee deeds, the final step of bank repossession, were also down. The state saw a 16 percent decline in the first quarter of 2010.
The Obama administration is pushing lenders to reduce homeowners' monthly payments through the $75 billion Home Affordable Modification Program. The White House recently announced major changes that will expand to include unemployed workers and payments to lenders to reduce the principal owed on mortgages.
See my 4/13/10 post for more information on the Short Sale process and links to resources for initiating the process with your lender.
Wednesday, April 21, 2010
Tuesday, April 13, 2010
Faster Processing of Short Sales?
If you owe more on your mortgage than the current value of your home, I've seen signs that bigger banks are making an effort to streamline the short sale application and approval process. Both Bank of America and Wells Fargo Bank sent out new instructions for borrowers and their Realtors for submitting hardship applications, listing agreements and purchase offers.
According to Wells Fargo, "We are committed to accelerating the short sale process. In fact, for those loans we hold in our portfolio, we have already undertaken efforts to streamline the sales approval process. The majority of the loans we service, however, are owned by other investors. So in many cases, Wells Fargo must obtain the approval of the first and any second mortgage investors. Our goal in these situations is to move the process along as quickly as we can."
Think a Short Sale might be the answer for you? Bank of America instructs Homeowners to contact them to gain access to theHomeowner portal at 1-866-880-1232. Wells Fargo says Homeowners are required to call their Short Sale Phone team at 1-866-903-1053.
According to Wells Fargo, "We are committed to accelerating the short sale process. In fact, for those loans we hold in our portfolio, we have already undertaken efforts to streamline the sales approval process. The majority of the loans we service, however, are owned by other investors. So in many cases, Wells Fargo must obtain the approval of the first and any second mortgage investors. Our goal in these situations is to move the process along as quickly as we can."
Think a Short Sale might be the answer for you? Bank of America instructs Homeowners to contact them to gain access to theHomeowner portal at 1-866-880-1232. Wells Fargo says Homeowners are required to call their Short Sale Phone team at 1-866-903-1053.
Sunday, April 11, 2010
Interest Rates Are Creeping Up
An improving economy and the end of government investment in the mortgage market contributed to a bump in interest rates this past week, rising to their highest point in the past eight months. Average 30-year fixed rate was 5.21, up from 5.08 the prior week.
Remember, the Federal Homebuyer Tax Credit program is ending an you must be in contract by 4/30/10 (and close escrow by 6/30/10) in order to take advantage of this program.
Remember, the Federal Homebuyer Tax Credit program is ending an you must be in contract by 4/30/10 (and close escrow by 6/30/10) in order to take advantage of this program.
Tuesday, April 6, 2010
Mortgage Rates Expected to Rise
Effective April 1, 2010 the US Government has stepped back from buying mortgage-related debt. This is expected to result in slowly rising interest rates for home mortgages.
Forecasters estimate rates on 30-year conventional loans will increase to anywhere from 5.5% to 6% by the end of the year, that's up from 4.96 at the end of March.
Forecasters estimate rates on 30-year conventional loans will increase to anywhere from 5.5% to 6% by the end of the year, that's up from 4.96 at the end of March.
Update on Tax Credits
The Federal tax credits for first time and existing buyers are expiring at the end of April 2010, but the State of California is stepping in with credits for first time buyers that will be in effect for buyers who purchase between May 1st and December 31st 2010.
These state credits are equal to 5 percent of the purchase price or $10,000, whichever is less. It must be claimed in equal amounts over three years, beginning with the year of purchase. To get the new credit, first-time buyers can purchase a new or existing home. A first-time buyer is defined as an individual, or an individual's spouse, who had no ownership interest in a principal residence for three years before the date of purchase.
People who are not first-time buyers can get the credit if they buy a newly built home, but not an existing one. In both cases, the home must be a single-family residence, attached or unattached, and be used as the buyer's principal residence for at least two years.
Kathleen Pender, business writer for the San Francisco Chronicle give an excellent breakdown of how the credit program works.
These state credits are equal to 5 percent of the purchase price or $10,000, whichever is less. It must be claimed in equal amounts over three years, beginning with the year of purchase. To get the new credit, first-time buyers can purchase a new or existing home. A first-time buyer is defined as an individual, or an individual's spouse, who had no ownership interest in a principal residence for three years before the date of purchase.
People who are not first-time buyers can get the credit if they buy a newly built home, but not an existing one. In both cases, the home must be a single-family residence, attached or unattached, and be used as the buyer's principal residence for at least two years.
Kathleen Pender, business writer for the San Francisco Chronicle give an excellent breakdown of how the credit program works.
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