June 2011 Entries

Low end, higher losses

"As I sit here, less than 24 hours from the next release of the much-followed monthly S&P/Case Shiller Home Price Index, I'm confronted with all kinds of varying data and hypotheses on the future track of home prices.  Particularly interesting to me is a new breakdown, by Capital Economics (which watches our market from Toronto, Canada), on how prices are falling faster at the low end than the high end.  At face value I thought this was a no-brainer. Of course the low end is falling faster because that's where the bulk of the foreclosures are, thanks to the subprime mortgage debacle, which of course targeted first-time and low-income buyers...

REO activity up

"Delays in foreclosure proceedings and a new push by big banks and servicers to find foreclosure alternatives are drawing a new, albeit still troubling picture of the nation's real estate market.  New notices of default, the first step toward foreclosure, fell to a level in May not seen since the end of 2006, according to a new report by online foreclosure site RealtyTrac. Bank repossessions, or REO, the final stage of foreclosure, also fell on a monthly basis for the second straight month. That pushed total foreclosure activity down 33% from a year ago.  'I really wish I could say that looking at a 42-month low in foreclosures action means...

Lenders make short sales even more attractive

CitiMortgage, the mortgage servicing arm of Citigroup is paying borrowers an average $12,000 after completing a short sale this year.  Justin Rand, the senior vice president of loss mitigation at the bank, said servicers are putting more of an emphasis on streamlining the process and pursuing a short sale ahead of foreclosure. The short sale process in 2009 took an average 120 days from listing to close. But by reaching out to borrowers instead of waiting for them to ask the bank, short sales now take an average 83 days to complete, Rand said at a panel for the REO Expo Conference in Fort Worth, Texas, earlier this week. ...

Homeowner forecloses on Bank of America

What???? You heard right. A Florida homeowner foreclosed on Bank of America for non payment. Are we still on planet Earth? Not a New York story but interesting nonetheless. Check out the video. Time By TARA-NICHOLLE NELSON Mon Jun 6, 4:50 pm ET In a modern-day evocation of David's slingshot triumph over Goliath, a couple of foreclosed homeowners in Naples, Florida reportedly foreclosed on a Bank of America branch last week, their attorney actually having moving trucks pull up in front of a Naples branch to execute a foreclosure judgment against the bank. What must have seemed to observers like a scene out of a parallel...