New Short Sale Bill Submitted to Congress

If the Investors holding the notes came to their “common senses” then this new H.R. 6133 bill would work…….the hold up is at the investors level..PERIOD!!!!   Tackle that one please!   

U.S. Representative Robert Andrews (D-N.J.) and Tom Rooney (R-Fla) offered up new legislation to Congress last week. H.R. 6133, "Prompt Decision for Qualification of Short Sale Act of 2010," is an effort from Congress to help keep potential buyers from walking away from short sales, simply because lenders take months to respond to their offers.  Read on this new Bill:  Realty Times - New Short Sale Bill Submitted to Congress

Lawmakers question Fannie on 'foreclosure mills'

The problems with the Florida foreclosure mills gets more interesting……….. as per Florida REALTORS…..WASHINGTON – Sept. 27, 2010 – A trio of congressional Democrats is demanding to know why government-backed mortgage giant Fannie Mae has entrusted many of its foreclosure cases to Florida law firms that stand accused of fabricating or backdating numerous court documents.   Read on : Lawmakers question Fannie on 'foreclosure mills'

The recession is over! So where’s the party?

It turns out the recession ended more than a year ago.
Feeling better now?  NOT!!!!!!!!   Read on:   The recession is over! So where’s the party?

Compliments of Florida REALTORS

Where is the shadow inventory?

Remember the afternoon soap opera “Dark Shadows”……it kept you in suspense….well, the “Shadow Inventory” is doing the same and POOOF!! … it seems like a No SHOW…….For the last year, the real estate industry has been talking about shadow inventory and the coming flood of distressed properties. Where are they?   Read on: Where is the shadow inventory?

From Florida Realtors….

Homebuyer tax credit causing headaches and trouble

The federal homebuyer tax credit did its job to boost the real estate market, but many involved – from buyers to the IRS – have run into problems with confusing wording and stipulations

Homebuyer tax credit causing headaches and trouble

Have existing-home sales hit bottom? | Inman News

Two leading indicators -- applications for purchase mortgages and the number of homebuyers entering into contracts to purchase homes -- suggest sales of resale homes hit bottom in July and will rebound this fall....

Have existing-home sales hit bottom? | Inman News

Short Refinance Program is HERE!!!

Short Refinance Program Initiated

In an effort to help homeowners who owe more on their homes than they’re currently worth, the government will initiate its “short refinance” program on Tuesday, September 7, 2010.

According to an August 6 Mortgagee Letter released by HUD (click here to download the entire letter), the program will allow “borrowers who are current on their mortgage to qualify for an FHA refinance loan provided that the lender or investor writes off the unpaid principal balance of the original first lien mortgage by at least 10 percent.”

While lender consent is required and program participation voluntary, the FHA has stated the program could modify between 500,000 and 1.5 million upside-down mortgages.

Following are a few of the eligibility requirements detailed in the Mortgagee Letter:
1. Homeowner must have negative equity, be current on the existing mortgage, and have a FICO score greater than or equal to 500
2. It must be for the homeowner’s primary residence
3. Existing loan can’t be FHA-insured
4. First lien holder must write off at least 10 percent of the unpaid principal balance
5. Refinanced mortgage must have a loan-to-value ratio (LTV) no greater than 97.75 percent
6. Second liens must be re-subordinated so the new loan does not exceed a combined LTV of 115 percent

Because of this last requirement, this program may have difficulty when confronted with situations involving second lien holders.

Compliments of: Distressed Property Institute/CDPE Blog

The Foreclosure TimeFrame per FNMA

From CPDE Blog:

Warning to Servicers: Fannie Mae is Watching for Delays
Posted: 03 Sep 2010 07:07 AM PDT
Fannie Mae has put loan servicers on notice: take too long to complete foreclosures and you could face fines.
Through a recent announcement, the government-sponsored enterprise has created timeframes for completing foreclosure proceedings (see their foreclosure timeframes for more information on a state-by-state basis). For servicers unable to provide a reasonable explanation for delaying proceedings, Fannie Mae may levy what it’s calling “compensatory fees for breach of servicing obligations.” However, delays beyond the control of the servicer will not be held against them.
Regarding these delinquent loans, Fannie Mae stated it would monitor “all whole mortgages, participation pool mortgages, and MBS pool mortgages with a special servicing option referred to an attorney or trustee to initiate foreclosure proceedings on or after July 1, 2010”. In its National Delinquency Survey, the Mortgage Bankers Association reported 13.97 percent of all mortgages were either delinquent or in the foreclosure process in the second quarter of 2010.
Here are some additional highlights from the announcement:
With this Announcement, Fannie Mae:
 has updated the allowable foreclosure time frames for four states;
 is monitoring all delinquent loans in Fannie Mae’s portfolio or MBS pools, and will begin notifying servicers of delays in processing delinquent loans;
 may begin conducting reviews of servicer loan files, processes, or procedures;
 requires accurate and timely reporting on the delinquency status of mortgage loans; and,
 will exercise its remedy to assess compensatory fees as deemed necessary.
The announcement also includes a chart of compensatory fees for specific circumstances. We’ll continue to post updates and results from this initiative as they happen.