Dennis Norman Musings

By: Dennis Norman

There just seems to be no end in site for the sickening numbers of foreclosures we are seeing take place in the housing market.  While, from an investors standpoint, it seems like a “positive” in that foreclosures often present a good opportunity for an investor to purchase property at below-market prices however it’s really a double-edged sword though as foreclosures drag down property values, which hurts an investor. Read more…

Dennis Norman

By: Dennis Norman

Presently SmartZip, which just launched its public Beta site in June, 2009, rates over 15 million properties, including listings, foreclosures as well as non-listed homes, across California and Florida only.  However, these two states represent some of the most opportunity-rich markets for real estate investment.  SmartZip plans to roll out its ratings to all 50 states over the next year which will then give them the ability to highlight the best investment cities across the nation. Read more…

Dennis Norman

By: Dennis Norman

Back in April I first did a post on avoiding foreclosure and loan modifcation scams but record numbers of homeowners facing foreclosures and foreclosure scams on the rise I thought it was worth talking about again.

The Federal Reserve , in a public service announcement, published “5 Tips for Avoiding Foreclosure Scams”:

• Work only with a nonprofit, HUD-approved counselor
  • Be sure the counseling agrency is on the Department of Housing and Urban Development’s list of approved agencies.  HUD’s website has a searchable list of approved housing counseling agencies. If you prefer you can call 877-483-1515 to check the HUD list.
• Don’t pay an arm and a leg
  • You should NOT have to pay hundreds–or thousands– of dollars.  Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling.  Do not agree to work with a counselor who collects a fee BEFORE providing you with any services or who accepts payment only by cashier’s check or wire transfer. 
• Be wary of “guarantees”
  • A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home–but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.
• Know what you are signing-and be sure YOU sign it
  • Don’t let a counselor pressure you to sign paperwork you haven’t had a chance to read through carefully or that you don’t understand. Don’t sign any blank forms or let “the counselor” fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.
• If it sounds goo good to be true, it probably is.
  • If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission’s webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center’s Consumer Action Website.

Dennis Norman

By: Dennis Norman

The government has taken steps to curtail the rate of foreclosures and help those homeowners that are facing foreclosure with the “Helping Families Save Their Homes Act of 2009″ and the “Making Home Affordable” program however the number of homeowners facing foreclosure is setting records.

As I stated in a post a couple of weeks ago about loan modifications making a difference and helping people stay in their homes, the real benefits of this won’t be seen for another quarter or two.  In the meantime the numbers are sad.

According to a report issued by RealtyTrac(R), there were 1,905,723 foreclosure filings (default notices, scheduled auctions and bank repossessions) on 1,528,364 U.S. properties in the first six months of 2009, a 9% increase in total properties from the previous six months and a 15% increase in total properties from the first six months of 2008. This works out to 1.19% of all U.S. homes (1 in 84) receiving at least one foreclosure filing in the first half of this year.

For the month of June there were 336,173 properties with foreclosure filings, the fourth straight month that the total exceeded 300,000 which helped boost the 2nd quarter to the highest quarterly total since RealtyTrac(R)began issuing its report in the first quarter of 2005. Read more…

By: Dennis Norman

According to a report issued by RealtyTrac(R), there were 1,905,723 foreclosure filings (default notices, scheduled auctions and bank repossessions)  on 1,528,364 U.S. properties in the first six months of 2009, a 9% increase in total properties from the previous six months and a 15% increase in total properties from the first six months of 2008.  This works out to 1.19% of all U.S. homes (1 in 84) receiving at least one foreclosure filing in the first half of this year.

For the month of June there were 336,173 properties with foreclosure filings, the fourth straight month that the total exceeded 300,000 which helped boost the 2nd quarter to the highest quarterly total since RealtyTrac(R)began issuing its report in the first quarter of 2005. Read more…

Dennis Norman

By: Dennis Norman

• Employment concerns and the ability to make mortgage payments are the greatest barriers to home ownership today.  This is particularly true for those people 25-49 years of age.
• More than three-fourths (77.4%) of consumers think a median income family can only afford 50% or fewer of the homes for sale in their area.  This is in sharp contrast to that fact that a family earning the median income can actually afford nearly 75% of the current homes for sale on Realtor.Com.
• Homeowners that have recently refinanced their mortgages are using the monthly savings from lower payments in different ways: 12.2% to pay their monthly expenses and 12.3% to remodel or repair their home
• One out of five people (20.1%) who say they or someone they know may be facing foreclosure in the near future have not yet taken steps to resolve their situation.  Additionally 22.4% have not taken any steps yet but plan to do so before the Making Home Affordable refinance program expires June 10, 2010.

Dennis Norman

By: Dennis Norman

• For the act to apply the tenant must be under a “Bona Fide Lease or Tenancy” which the act describes as:
  • the tenant is not the mortgagor or the child, spouse or parent of the mortgagor
  • the lease or tenancy was the result of an arms-length transaction, and
  • the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit’s rent is reduced or subsidized due to a Federal, State or local subsidy
  • tenancy or lease was in effect as of the date of the “notice” of foreclosure Read more…

By: Dennis Norman

Today the Office of the Comptroller of the Currency (OCC) and the Office of the Thrift Supervision (OTS) released their mortgage metrics report for 1st quarter 2009.  

The report shows foreclosures continued to increase during the first quarter of this year.  However the report also shows a significant increase in short-sales which I discussed yesterday in a post. 

Below are some stats from the report: Read more…

Dennis Norman

By: Dennis Norman

Today the Office of the Comptroller of the Currency (OCC) and the Office of the Thrift Supervision (OTS) released their mortgage metrics report for 1st quarter 2009.   The report covers the performance of 34 million home loans in the US.

The report shows that delinquencies and foreclosures continue to increase during the first quarter of this year.  However the report also shows that lenders are greatly increasing the number of loan modifications they are doing for borrowers in an effort to curb foreclosures.  As you review the stats it is worth noting that the loan modifications reported happened before the “Making Home Affordable” program which was implemented after this period and should increase the number of modifications in the future. 

Below are some stats from the report: Read more…

First off, my usual disclaimer…I am not an attorney and this is not intended to be legal advice or a legal opinion. 

Dennis Norman

Now that we have that out of the way lets talk about options that may be available to you if you are one of the 20% of homeowners that a recent study says owes more on their mortgage than their homes are worth.

If you do find yourself in this situation fortunately today there are some options available worth considering:

• See if you qualify for the Making Home Affordable Loan Modification Plan.  This program is for those homeowners that are struggling to make their payments, or may have even missed a payment or two, but could make their payments if the amount was reduced.  To complete a short questionnaire and find out if you may be eligible for this click here.
• If you have an FHA loan you may wish to contact a HUD approved counseling agency to explore what options may be available to you.
• For an extensive list of resources that are available please see my post “Help for homeowners facing foreclosure“. Read more…