Notice of Sale and Notice of Default filings are High this week, See the trends here! September 29, 2009

The notice of defaults recorded this week are at the third highest (at 139) level since  I started tracking them back in the first part of June.  I assumed that it would be high just because of the passed trends.  Its seems like we get them in spurts, and then they go way down.  The Notice of Sales reported this week (108) is at the highest level since June 28th.  I am guessing from what I have seen so far is that we will have a continued upward trend in the Notice of sales, compared to the last three months.  Some of the banks are starting to process some of the pent-up inventory that has been sitting there for the past year.  I was reading the WSJ, and some of the numbers of the current loans that are in default that haven't been processed yet for the foreclosure proceedings were at very high levels.  I said this in an earlier post that there was 1.2 million of those loans that haven't even started in the distressed pipeline, because of the banks are waiting to see if they can qualify them for Loan Mods, or other bank "workout programs" that are available.  Soon as they become disqualified they move them into the foreclosure process.  To qualify for some of those programs, you need to fit a certain criteria, and the banks are coming to realize that most of the people can't even make the first cut.   

      Here are the current charts for the NOD's and NOS's in Ada county for the past 3 months.  Click on the bottom link to go to the Distressed Property Reports Page.to download free copies of the current recipients for the NOD's and NOD's.

http://sites.google.com/a/schrenkerickson.com/distressed-property-reports/home

You can always go to AdaCountyMarketReport.com and click on "Distressed Property Reports Pages" on the right hand column.  

thanks

Jeremy Erickson

See and download the full gallery on posterous

Posted via email from Jeremy R Erickson

Notice of Defaults and Notice of Sales continue their decline in Ada County! Check out the trends! August 18, 2009

I am loving what I am seeing in the NOD’s and NOS’s!, the defaults have been on a 5 week drop, we have come from the 140′s down to the 40′s (Notice of defaults per week)  The NOS’s for the week have dropped too, they were pretty high and this week the ended up at their lowest point over the last 3 weeks.  Stay tuned for more market analysis, and information on Ada County Real Estate Market.

See and download the full gallery on posterous

Posted via email from Jeremy R Erickson

Notice of default and Notice of Sale Lists are updated and ready to view as of 8-12-2009. August 13, 2009

Hi everybody I just got the reports on the NOS and NOD Lists for the week.  I am excited to report  that the Notice of Defaults have been on a decline over the past 4 weeks,  I thought that was pretty exciting!  Not sure if it will continue, but at least we can see some positive progress.  On the other hand, the Notice of sales are on the rise, but I think the system is working out a glut of defaults that we have had over the past 3-9 months.  I have created a Distressed Property Reports page linked from the website.  Just click here to see the reports,  I am still working on it, so if you are having some trouble accessing some of the data just let me know.  When you look at the spread sheets, Make sure you scroll down to see the “chart” tabs on the spreadsheets.  Thanks,  have a great week!

PS  if you browser blocks the embedded link above, just cut and paste the link below into your browser:

http://sites.google.com/a/schrenkerickson.com/distressed-property-reports/

Jeremy E

AdaCountyMarketReport.com

Posted via email from Jeremy R Erickson

What is a loan modification August 12, 2009

What is a Loan Modification?

A loan modification is much like a mortgage refinance in that the objective is to find you a more affordable mortgage payment for your financial situation. In fact, it is often called a modified refinance. The primary difference is that instead of looking for a “new” loan you will just simply “modify” the terms of you existing mortgage.

Why a Loan Modification Versus Refinancing My Mortgage?

Refinancing your existing mortgage to obtain a more affordable mortgage payment could still be an option. Unfortunately, for an increasing percentage of homeowners it is not. That is precisely what loan modifications are for, the homeowner that has incurred a financial hardship that prevents other mortgage financing or payment options.

In most cases, a loan modification is recommended to homeowners that have a financial hardship that is preventing them from making their monthly mortgage payments. Most how are eligible for these types of mortgage modification programs have already missed one or more payments.

Am I Eligible for a Loan Modification?

This will vary depending on who services (i.e., who you send your mortgage payment to each month) your mortgage. However, most follow very similar qualification criteria. These are the most common loan modification qualification standards:

• Experienced a documented hardship or change in financial circumstances
• Missed three payment (90 days delinquent) or more
• Owns and occupies the property as a primary residence
• Not filed bankruptcy

Other important factors that can effect your eligibility:

• Do not purposely default to get a loan modification
• Make sure you are responsive in working with your lender

Since many of the programs do vary in how they work, you should contact your lender and advise them of your hardship and get more information.

Where Do I Get a Loan Modification?

Ultimately, the only place where you can get a loan modification is with the lender or servicer that current holds your mortgage. Confused as to who this might be? In this mortgage market, where mortgages are bought, sold, and packaged up into securities for Wall Street, this part can be the hardest step in the loan modification process.

The best place to start is your mortgage coupon book or statement–who do you send your mortgage payment to each month?

Each mortgage lender or servicer will have different loan modification programs and processes. In addition, often the staff at these companies have little training to handle a loan modification inquiry.

This is where getting a loan modification can become very challenging. Seeking expertise in streamlining your loan modification process can often save you a lot of frustration and money.

What Do I Need to Show the Bank?

The bank ultimately is in the business to return a profit to their shareholders, just like any other business. Consequently, your objective in presenting your loan modification request is to show that it is in the best interest of the bank to modify your loan.

What might support your modification request? Here are the points that you should be able to show your bank:

• You have had a material change in your financial circumstances
• You have made every effort to make your mortgage payments
• You have been cooperative and responsive in working with them
• You are not in any way purposefully defaulting to get a loan modification
• You are willing to be open, honest, and provide all necessary documentation

Remember your bank is essentially making a new loan to you after taking a loss on the first one. You need to demonstrate to the bank that you are able to pay on the new modified loan terms.

What Documents Will I Need?

Your loan modification package is going to be the most important part of your mortgage modification efforts. Again, the contents and process for packaging the information for your lender’s consideration will vary, but the critical elements are typically the same. Here is an example of the documents you will probably require:

• A letter documenting and explaining your hardship
• Proof of current income and capability to make modified loan payment
• Detailed monthly expense report or budget

The principal purpose of the loan modification package is to provide your lender with sufficient documentation to evaluate the risk in modifying your mortgage. The main question your lender is trying to answer is can you pay the new modified mortgage payment, and will you.

Why Would a Bank Modify My Mortgage Loan?

Simply because it is in the best interest of the bank. As you attempt to inquire about a loan modification do not confuse this transaction with an altruistic act of kindness. It is fundamentally a transaction that makes more business sense than the alternative–you defaulting on the entire mortgage and costly foreclosure proceedings.

It is also a product of the current economic conditions. There are so many homeowners that have been pinched by the simultaneous collapse of the housing market and the economy. This creates a unique circumstance–modifying your mortgage, to keep you in your home, benefits the bigger economic picture.

Loan Modification Programs

As mentioned before, loan modification programs are just becoming mainstream and therefore there is little standardization. The details of loan modification programs that you qualify for will start at your lender or a loan modification counselor that can guide you.

Here are a few of the most prevalent loan modification programs and resources:

White House/Treasury Loan Modification Program

The Obama administration, under the guidance of the US Treasury has created one of the most inclusive loan modification programs to date. This mortgage modification program not only helps borrower in current financial stree, but also good paying homeowners that think they may have challenges in the future or have lost significant equity in their homes due to the housing market crisis.

You can learn mor about this program at: FinancialStability.gov-Making Home Affordable

IndyMac Federal Bank Loan Modification Program

IndyMac Bank was one of the first financial institutions to broadly offer loan modifications to their mortgage customers. When the FDIC took over IndyMac it became the first test bed for an extensive loan modification policy. You are eligible for this loan modification program if IndyMac Federal Bank holds or services your mortgage.

You can learn more about this program at: FDIC Loan Modification Program for Distressed IndyMac Mortgages.

Federal Housing Finance Agency Loan Modification Program

The most recent of the loan modification programs was the one offered by the Federal Housing Finance Agency (FHFA), the supervisory regulator of Fannie Mae and Freddie Mac. This loan modification program applies to any mortgage held or serviced by Fannie Mae or Freddie Mac.

You can learn more about Fannie Mae and Freddie Mac loan modifications in FHFA Director Lockhart’s Statement on Loan Modification Program [PDF]

Major Lender’s Loan Modification Programs

The largest banks in the US are all offering aggressive loan modification programs and in some cases issuing foreclosure mortatoria. These programs are expected to proactively modify hundreds of thousands of mortgage loans.

You can learn more about Citigroup’s loan modification programs at:

• Citigroup’s statement on Preemptive Initiatives to Help Homeowners
• Citigroup’s dedicated website for the Office of Homeownership Protection

You can learn more about JP Morgan Chase’s loan modification program at:

• JP Morgan Chase’s statement on enhancements to their loan modification initiatives

You can learn more about Bank of America/Countrywide loan modification program at:

• Bank of America’s statement announcing their Nationwide Homeownership Retention Program
• Nationwide Homeownership Retention Program Fact Sheet for Countrywide Mortgages
• Guidance on Bank of America and Countrywide Financial Hardship Assistance Programs

If you have questions about this article please call us at SplusE.com  at (208) 991-3171  (Article was provided by  www.mortgageloan.com)

Why do banks take so long to approve a short sale? August 7, 2009

Why do banks take so long to approve a short sale?

This question comes up over and over again from Realtors, homeowners and home buyers everywhere I go.

A one sentence answer doesn’t exist for this question. If you truly want to know the

answer to the question, “why” continue reading. This means you will have to take a step back from your particular emotional situation enough to really listen to what’s being said because everyone wants their deal approved NOW.

Banks are under no obligation to approve your short sale. I know what you’re thinking, reader. You’re thinking, “Well if the darn bank would just approve my short sale faster, they wouldn’t be losing so much money!”

Let’s start at the beginning. A homeowner is said to be in a short sale situation when he or she owes more than what the home is currently worth, is in default and must sell. Traditionally, homeowners agreed to pay back the difference between what was owed and the sales price. The short sale seller signed a new, unsecured note at closing and promised to pay back the difference in regular monthly installments. The only case where the debt was “forgiven” was for true financial hardship cases where there was absolutely no way the homeowner could ever repay the difference.

An example would be the untimely death of one of the breadwinners. But that was then.

In today’s politically charged, loan modifications for all, let’s-dump-everything-into-

FHA environment, homeowners in a short sale situation today are receiving debt forgiveness and even temporary tax exemptions on top of that. Don’t worry, the rest of us tax payers will pick that up for you.

The first step in figuring out why your short sale is taking so long to be approved is to inquire about whether the homeowner is asking the bank to forgive the difference or if the homeowner is gainfully employed and able to pay back the difference. This all must be proven and documented to the lender’s satisfaction. If the homeowner is asking for debt forgiveness, the short sale will take longer to approve if the bank does not have all the required documentation.

Thought question: Why would any lender approve a short sale, especially one that requires debt forgiveness, unless there is proof that foreclosure is imminent? Answer: They won’t.  Lenders have no motivation to approve a short sale if the homeowner has not yet defaulted on their loan; the bank has little motivation to approve the short sale. Why not wait for a better offer to come along? (Note, homeowners reading this article should always consult with an attorney if you are selling short, in default, or will be in default on your mortgage loan(s).)

All loan servicing departments have processes in place for dealing with short sale approvals. They may not have fancy computer systems so that everything is automated but maybe that’s a good thing. Look where automated underwriting got us.

Next step: Homeowners must prove that they do not have the money to make up the shortfall. This means sending in copies of all bank statements, tax returns, w-2s, and other supporting documents to verify that the homeowners is financially insolvent.  Short sales are reserved for people with NO MONEY.

Gentle reminder: The new sale must be an arms-length transaction. Another common problem that lenders must watch for is when the real estate agent on the transaction happens to be the “assigned” buyer on the purchase and sales agreement. The lender is not going to be thrilled in paying a real estate commission on that kind of transaction. Further, there are plenty of foreclosure rescue scams happening nationwide. Lenders scrutinize short sale offers to look for signs of fraud.

Is it the job of the Loss Mitigation Department to care about clearing your local RE market? No. Is it their job to care about keeping your buyer wiggling on the hook long enough to get papers signed? No. Is a short sale supposed to be a painless alternative to foreclosure for anyone involved?

No. There are no painless alternatives. There shouldn’t be. There cannot be.

Next, everyone who is patiently waiting for the bank to approve the short sale must now realize that once the bank says “okay” to the short sale, there very may be a long list of investors who own pieces of this mortgage loan. Each and every investor will have to give their approval for the short sale. We enjoyed many years of growth in the real estate industry and the overall economy thanks to the invention of Residential Mortgage Backed Securities. RMBS made millions of dollars for many people. The downside to securitizing mortgage loans and then selling off slices of each mortgage to different investors is that when it comes time to tell the investor “you’re going to have

to take a haircut” that investor gets to have a say in the matter.

Calling loan servicing and yelling at them over the phone will get you nowhere.

I would like to be first to predict that the next meltdown will be loan servicing. But perhaps my prediction is so obvious as to not be much of a prediction at all. How much longer can they sustain this level of stress and pressure, with their current staffing levels, while the banks are facing enormous losses? Of course when that meltdown happens, I predict our government will step in and mandate harsher regulations on servicers, which will be passed on to the consumer in the form of higher interest rates.

Loan servicing use to offer what it said: “service.” It was treated as a cost center on a bank’s balance sheet. Over the past 15 years, servicing became a “profit center” and the highest expense, namely labor, was cut to achieve profit goals. This is one more lesson in under-pricing. The cost of “good” loan servicing in which phones are answered and files processed smoothly, would have cost us all, way, way, way more on the retail end, than what we paid. Let’s say we could create instant loss mitigation nirvana today. All phones are answered on the first ring, all short sales are approved with no questions asked, no documentation required, no proof of hardship necessary, no proof of financial insolvency needed, and all Realtors receive their full 6% commission.  The consequences of not performing due diligence at the loss mitigation stage are disaster for all of us. Compare this to the current nirvana we just left behind: A world where anyone could get a mortgage loan with no verification of ability to repay, with massive fraud still being uncovered. We need to do it right this time, and it takes TIME to do proper short sale loss mitigation.

SplusE.com

Ada County Notice of Sale for Week of July 14th-20th 2009 July 22, 2009

Download now or preview on posterous

ADA County Notice of Sales July 14th-20th.xls (205 KB)

This Document shows the properties and owners that have just received the "Notice of Sale" recording in Ada County Recorders office.  

They will be sold at the future date listed.  Stay tuned for trend tracking charts and graphs from AdaCountyMarketReport.com

Jeremy E

Posted via email from Jeremy R Erickson

Updated Notice of Defaults for Ada County, They have climbed from 116 to 142 this last week! July 21, 2009

Default list just came out today, and the defaults took a big jump this last week up to 142 from 116 the week previous.

We will continue to watch this trend, and keep you posted.   You can also click here to see the full chart in web format.

Here is the Link:

http://spreadsheets.google.com/ccc?key=t6VjYJmAJ-PDsaM-G4dSTcA

Posted via email from Jeremy R Erickson

Flow Chart of Foreclosure and Short Sales Process, What other options do you have? July 15, 2009

This is a good flow chart of what the process is when homeowners go into default with their mortgage.  There is other options besides Foreclosure and Short Selling.  You can also have your loan modified if you fit the “Program Criteria”, There is the “Making Affordable” plan that has been instituted to help out homeowners that have had hardships in their income, along with a adjustable rate to make things worse.  A Lender doesn’t want to foreclose on the house, they loose at least 200-300k just in the process alone, not including the loss in the property.  They are motivated to keep you in, but overwhelmed  so you have to stick with them to get it done.  There are some Law offices that will help with the “Loss Mitigation” Process.  They are around $2500 to $3600 for their Retainer fee.  I would use them as a last resort if you are not getting anywhere with your lender, it seems like lenders get more motivated when there is attorneys involved.  If you need a recomendation on a good law firm that specializes in Loss Mitigation, I can refer you. Please check out the link below to get a worksheet for loss mitigation company. If you have any questions on this stuff, please let me know, Leave a comment, or email me at jeremy@southwestboise.com

thanks

Jeremy E

PS  here is the link to the . Loss Mitigation Application Worksheet

Tracking ADA County Recorded Notice of Defaults July 15, 2009

This is a Shot of one of my living Charts that resided on the Website.  Go to http://www.jrerickson.com/ACMR/NDF_Chart.html# to get the live document.  Every Week I put in the new amounts of defaults that are being recorded at the County.  A lender after 90 Days will Send a “Notice of Default” to you if you haven’t been paying your mortgage. from there, they will proceed with Foreclosure process.