FORECLOSURE REVIEW STARTED YESTERDAY
FORECLOSURE REVIEW STARTED YESTERDAY
We recently published a post about the government foreclosure review. That review started yesterday. The important thing to remember is that there is a deadline of April 30, 2012, for review requests.
Distressed homeowners who went through foreclosure in 2009 or 2010 may be affected. There are 14 loan servicers, listed on the Office of the Controller of the Currency web site, who may not have followed proper legal procedures during the foreclosure process.
The loan servicers involved for this program include:
- America’s Servicing Co.
- Aurora Loan Services
- BAC Home Loans Servicing
- Bank of America
- Beneficial
- Chase
- Citibank
- CitiFinancial
- CitiMortgage
- Countrywide
- EMC
- EverBank/EverHome Mortgage Company
- Financial Freedom
- GMAC Mortgage
- HFC
- HSBC
- IndyMac Mortgage Services
- MetLife Bank
- National City Mortgage
- PNC Mortgage
- Sovereign Bank
- SunTrust Mortgage
- U.S. Bank
- Wachovia Mortgage
- Washington Mutual (WaMu)
- Wells Fargo Bank, N.A.
- Wilshire Credit Corporation
If you, or someone you know, lost your home to foreclosure during the specified period and one of the 14 loan servicers completed that foreclosure, you may have some money coming.
You may request an independent audit of your foreclosure at no cost to you.
If the independent audit determines that the foreclosure caused you financial harm due to loan servicer error, the government will order remediation (you get money back).
The important thing to remember is that a request for an independent audit DEADLINE IS APRIL 30, 2012. The will not consider requests post marked after that date valid for this program.
We ask that you pass this information on to anyone you know who may have been harmed. It is about time the little guy wins a round!
Select this link to review the full article and links for additional information:
http://www.occ.gov/news-issuances/news-releases/2011/nr-occ-2011-133.html
REMEDY FOR SOME FORECLOSURE VICTIMS!
REMEDY FOR SOME FORECLOSURE VICTIMS!
If you lost your home through foreclosure in 2009 or 2010 there may be a remedy waiting
for you. The Office of the Comptroller of the Currency (OCC) has ordered an independent review of foreclosures processed by GMAC Mortgage, HSBC Finance Corp., Sun Trust Mortgage and EMC Mortgage.
If one of these loan servicers processed your foreclosure, and you believe that you were financially harmed during their foreclosure process, you may have some cash coming!
The government has determined that there may have been flaws in the foreclosure processing in some cases. Homeowners/borrowers who feel that they were financially harmed may request an independent review. If errors are found, the servicer will be required to compensate the borrowers for that financial injury.
Borrowers are eligible if:
- The home lost in foreclosure was the borrower’s primary residence
- The loan was at any step of the foreclosure process between January 1, 2009 and December 31, 2010
- The loan was serviced by one of the organizations listed above
- The request for a review must be received by the independent reviewing authority by April 20, 1012.
The review process is a free program, so there will be no charge to borrowers.
For more information, select this link:
http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review.htm
BANK OWNED (FORECLOSURE) HOME SALES DATA FOR EL DORADO HILLS, CA – Dec 2011
BANK OWNED (FORECLOSURE) HOME SALES DATA FOR EL DORADO HILLS, CA – DECEMBER 2011
This is the latest monthly report of a four-year study of bank owned home sales in El Dorado Hills, CA. This report covers December 2011.
There were six bank owned homes sold in El Dorado Hills in December, down one from the
previous month. A low inventory is the primary reason.
The average days-on-market increased from 29 in November to 79 in December. One of the homes had been on the market for over 100 days. Some old inventory was cleared out. None of the homes that sold had been on the market for two weeks or less, which is very unusual.
The six bank owned homes that sold represent only 8% of ALL homes sold in El Dorado Hills this month. This is a much smaller segment than normal, despite the increase in inventory.
The available inventory of bank owned homes in El Dorado Hills spiked at a 2.4-month supply in December, the second highest inventory level in 2011… The available inventory for ALL homes available dropped from a 2.9-month supply the previous month to a 2.2-month supply in December, the lowest inventory level in 2011. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a strong seller’s market for ALL homes in El Dorado Hills.
The average cost-per-square-foot for Bank Owned homes was $ 150 in December, up considerably from $ 126 in the previous month, and the highest in the past fifteen months. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in December remained $ 153 for the second month in a row.
The overall sales price for bank owned homes was 94.9% of the final asking price and 87% of the original asking price. Only one of the buyers paid the full asking price in December. The banks did not do a very good job of estimating the market value of their “toxic Assets” that sold in December.
Bank owned homebuyers paid 98% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in December. That is only $ 3 pre-square-foot savings. When applied to a 2500 square foot home that represents a savings of $ 7,500, much less than usual.
If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
Short Sale 101 – Part 3
Short Sale 101, Part 3
In the earlier posts in this series, we discussed the primary requirements a distressed homeowner must meet in order to obtain a short sale approval. It might be helpful, at this juncture, to go into some detail with respect to the documentation that will be required if the bank before they will consider approving a short sale. Borrowers contemplating a short sale should be aware of these document requirements.
As we indicated earlier, everything must be supported by documents that will be used to verify the borrower’s claims. Therefore, one should take care that all of the information provided matches.
The first document that any bank will require is a written request for approval of a short sale. The bank has to know what you want to accomplish. Second, is the borrower’s hardship letter, explaining in some detail the nature of the financial hardship that prevents that borrower from continuing to make their monthly payments.
The third document required will be the borrower’s authorization allowing the bank to speak to the borrowers Realtor©. Without that signed authorization, the bank may not discuss your situation with your Realtor© or anyone else.
Almost every bank will require copies of the borrower’s tax returns as filed for the past two years. The bank will require every single page and every single schedule filed with the IRS. They will match the data provided in the tax return with other documentation you will have to submit. All W-2s and/or 1099s filed with the IRS must be included for the tax years involved.
The bank will also require documentation verifying all income streams, paycheck stubs, commission checks, documents reflecting bonus payments, tips or any other documentation pertaining to the borrower’s income. If the borrower’s income comes from a business that they own, they will require copies of the books for that business.
The bank will require documentation reflecting all of the borrower’s liquid assets, checking accounts, savings accounts, money market funds, Christmas savings account funds and documents pertaining to stock, bond, mutual fund or other investment accounts.
They will also require documentation pertaining to non-liquid assets such as any other real estate owned, vehicles owned or leased or other major assets owned.
If, as frequently happens, the bank is slow in processing your short sale request, it may be necessary for you to provide more current documentation on your income or your assets. They always want the most up-to-date information. In addition, the processors will not forward your file to a decision-maker unless all of the data is current. There is a no tolerance policy involved here. Space borrowers who are not diligent record keepers may find it necessary to contact their banks, investment companies to obtain the required documentation on that company’s letterhead. This process could take some time. It may be prudent to collect the documents in advance so that you do not delay the process of submitting your short sale package.
We reiterate that it is very important to select the right Realtor© to handle your short sale. A short sale package may exceed 110 pages of documentation when submitted to the bank. If it is inaccurate are incomplete, the bank will reject it. Most distressed homeowners have not made their monthly mortgage payment for some time. Therefore, the foreclosure process has begun and time is of the essence. Delays on the part of the borrower only hinder their chances of success.
If you have any questions about the information covered in this post, or any of the previous posts in this series, feel free to give us a call at 916-337-0658. We will be happy to clarify any of the points made.
Stay tuned for more information on the subject.
FANNIE MAE & FREDDIE MAC ANNOUNCE EVICTION MORATORIUM
FANNIE MAE & FREDDIE MAC ANNOUNCE EVICTION MORATORIUM
The two huge government sponsored entities that own or control most of the mortgages in this country have announced a holiday eviction moratorium through January 2, 2012.
The goal is to provide distressed homeowners who are about to be evicted a few days grace period. Unfortunately, it is only a very short reprieve. January 2nd will be here very soon. Let us hope that this will help some of these families at a very difficult time. Perhaps the extra few days will allow some to find better alternative placed to live as they struggle to get their lives back on track.