I'm amazed at the, recent, turn of events on foreclosures.
At one point, all the major servicers, known as the BIG 4, were accelerating foreclosures and FNMA/FMAC were setting records (Allbeit - depressing records) on monthly/quarterly foreclosures.
So, here we are in the midst of "oblivious" robo-signers and massive issues relating to MERS and the rights, within that institution, to directly foreclose on properties.
The fact that hundreds of thousands of real estate properties, whose mortgages were sold, and resold and resold - in the secondary marketplace - and now, likely, have missing links in their associated chain of title, is disturbing and will be resolved, but at what additional cost ??
Yes, the problem(s) absolutely have to be fixed, but watch the massive litigation that is about to take place, between title companies and servicers/lenders.
Where does this leave all of the current owners of real estate that they purchased as REOs ?
Will any of these, "recently", sold REOs fall into a grey area - split between a previous owner's claim, or fact, that the foreclosure was NOT, in fact, legal ??
One thing for sure, these are some major issues that aren't going away anytime soon.
According to numerous "reliable" sources, there's a 2% + month-over-month increase in the nation's home loan delinquency rate, up to over 9% in May 2010.
Delinquencies are expected to increase as seasonal purchases taper off.
That buyer's tax credit also helped to inflate what many believe would have been an, overall, "flat" Spring Buying season.
Sources state that the percentage of mortgage loans in default, 90 + days, increased, while both delinquency and foreclosure rates continue to remain relatively "stable", at historically high levels.
As of June, 2010 - there are more than 7 million loans in some stage of delinquency.
Sources state that the average number of days for a loan to go from 30 days delinquent to foreclosure is on the rise.
Keep in mind that there's a HUGE inventory of REOs that cannot be released onto the standard marketing engines, like the MLS - for fear of declining already challenged real estate values.
Sources went on to state that, after a two-month decline, deterioration ratios increased, with an average of more than a 2 to 1 ratio of loans rolling to a worse status, meaning for every one loan that is "saved", 2 move closer to foreclosure.
The number of delinquent loans that "cured" to a current status declined for every stage of delinquency, except in the "greater than six months delinquent" category.
This improvement was likely the result of trial modifications made through the Home Affordable Modification Program (HAMP) that transitioned into permanent status. LPS manages the nation's leading repository of loan-level residential mortgage data and performance information from nearly 40 million loans across the spectrum of credit products. Diana Olick of CNBC says, "Oh good, so the HAMP program is helping "cure" those 6 month+ delinquencies. No, they're just delaying them yet again, since we know that the re-default rate on HAMP is only rising. Forget cure and think remission."
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