Here is an interesting application of the job loss protection gurauntees the auto industry introduced being applied to the Real Estate Market

http://www.mortgagenewsdaily.com/channels/video/79154.aspx

 

 

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Here is the website for the program the Real Estate Company is using as the insurance backstop for making this claim

http://www.helpprogram.org/index.htm

 

C.A.R. launches Mortgage Protection Program (Thursday, April 2, 2009)

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A lot of Direct Lenders, Banks, Government Agencies and Non-profit organizations are inundating homeowners with messages that Third Party Loan Modification Companies are "scammers" and that borrowers should use extreme caution when doing business with these companies.  They tell homeowners that they will do their loan modification for free.no_free_lunch_124.  !FREE Loan Mod! That sounds great! I'll take it!

Unfortunately as the old saying goes, there is no free lunch...especially when it comes to loan modifications.

I'll give you an example of what I mean.  I just called Chase Bank to check status of a Loan Modification sent in on 5/18/09.  The first representative told me I needed to wait 6 weeks before I could confirm receipt of the package.  I knew that had to be…

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Want to feel frusturated and Raise your stress level? Click this link and read

Found this blog post on Active Rain.  Reading this post is the best way I think for the average layman to understand the frusturation with dealing with Lenders Loss Mitigation Departments.

 

This article did not surprise me though.  I've been waiting > 2 months for a Loss Mitigation Department to give me an updated approval.  I have a buyer willing to purchase property on terms approved by investor (based on Febuary 2009 BPO).  All I need is updated approval with new buyers name.

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According to this Realtytrac report for first Quarter 2009, California was #3 in the country in terms of highest percentages of foreclosure filings at ~1.72%, Arizona just beat us out ~ 1.85% and Nevada was the undisputed champ at ~ 3.7%. Realtytrac defines a foreclosure filing as an NOD, NTS or a bank repossession.

The national average is ~.63% of all U.S. Properties (had some sort of foreclosure filing during that same time period.)

Defaults in California are up by record numbers according to this Dataquick article.  Up 80% from prior quarter (Q4 2008) and 19% from prior year quarter (Q1 2008). 

~70% of loans originated by ResMae 8/06=>11/06 have defaulted, Masters Financial and Ownit were both North of 60% too during that time period, WOW!!...

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As I understand it, the Home Valuation Code of Conduct (HVCC) was passed to erect a barrier between Loan originators having undue influence on appraisers.  Basically the Government is saying that Mortgage Brokers are twisting appraisers arm to inflate values so they enacted this law.  As I sit and try to understand this new law here are my initial thoughts:

  1. Lenders have whats called in house "Appraisal Review".  These departments basically analyze comparable sales to verify that appraisers aren't doing things like excluding better comparables.
  2. Why are some of the biggest lenders in the country allowed to run their own appraisal management companies?
  3. Why is there no oversight of Appraisal Management companies, no licensing required.
  4. There is a…

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There are alot of misconceptions surrounding FHA within the Real Estate Industry.  Especially from people that have been in the industry for a long time.  During the height of the "Mortgage Bubble" no one used FHA because of the relative difficulty in closing them.  HUD realized this and revamped the program in significant ways in order to make FHA a more competitive program within the marketplace.  These modernization efforts combined with the dissappearance of the Secondary Market for non-agency products and the simultaneous tightening of the Fannie/Freddie conventional guidelines has placed FHA back on top as the financing product of choice for Residential 1-4 unit purchase transactions and high ltv refinances.  I'll try to address some of these…

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Its that time of year again... 

NBA Playoff time in Los Angeles and the Lakers (like they usually do) have a legitimate shot at taking the title again this year.  2nd best record in the league, returning everyone from a team that should have won the whole thing last year if it wasn't for a complete meltdown in game 4 at Staples Center.  Plus with the addition of a healthy Trevor Ariza and Andrew Bynum things look very good for Phil Jackson's crew.

 

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What does this mean?

Get ready to start seeing all those fair weather fans that probably can't name a player on another team in the entire league and still might think Shaq is on the team place their Purple & Yellow Laker flags on their cars.  This is LA of course and everyone always loves to try and…

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