From bloomberg.com, hat tip PH! Homeowners with mortgages of more than $1 million are defaulting at almost twice the U.S. rate and some are turning to so-called short sales to unload properties as stock-market losses and pay cuts squeeze wealthy borrowers. "The rich...
Seen on CR, this summary on Bloomberg discusses the recent developments with short sales, DILs, and loan modifications. The article's ending: Short sales benefit a neighborhood because they clear out stagnant properties that may have an adverse effect on values, said...
A candid conversation with a Wells vice president, from within the machine – a couple of excerpts:
“We still have work cut out for us. We have customers where the administration has extended it four to five payments. We have a few borrowers sitting in that situation. We have heavy, heavy lifting to do in the next couple months to pull these customers through.”
“We have lower redefault rates. Our key to these pay-option ARMs, if a customer is able to make a payment, we have to find a way to continue to allow that payment to be able to be made. What we are doing is restructuring the loan looking at net present value. It’s been very effective. Many of these customers need to be bridged from a negative amortization to an interest only. If you took them to a fully amortized product, there’s no way they are going to be able to make it. Over time, they will from an IO, step up, so there’s no payment shock.”
From sddt.com: A new report concludes the level of commercial loan defaults accelerating, but whether that means a surge of commercial foreclosures in San Diego depends on who is assessing the data. Nationally, the Deutsche Bank report noted more than $2 trillion...
Piggington has featured our friends at Effective Demand, and their recent post about loan mods: http://effectivedemand.blogspot.com/2009/06/california-loan-modifications-update.html It's an update from the California DofC about who's getting what when it comes to...
Here we go again, more government intervention - the latest authored by Ted Lieu, from El Segundo (home of the World Champion Los Angeles Lakers). Back in February the California state legislators passed the Lieu Foreclosure Prevention Act, and our governor signed it...
Business Week had this article in April entitled "Good News: Option ARMs Resets Delayed", which included the latest Credit Suisse chart on recasting neg-ams: http://www.businessweek.com/lifestyle/content/apr2009/bw20090416_103126.htm Dr. Housing...
Hat tip to Stephen for passing this along, from propublica: The Hope for Homeowners program was created by Congress last summer to help an estimated 400,000 homeowners avoid foreclosure. But it could more aptly be called the Hope for A Homeowner program, given that...
Bruce Marks doesn't bother being diplomatic. A campaigner on behalf of homeowners facing foreclosure, he was on the phone one day in March to a loan executive at Bank of America Corp. "I'm tired of borrowers being screwed!" Mr. Marks yelled into the phone. "You're...
From HopeNow's press release: Washington, D.C. (April 30, 2009) – HOPE NOW, the private sector alliance of mortgage servicers, non-profit counselors, and investors that has been working aggressively to prevent foreclosures and keep homeowners in their homes, today...
