Archive for January, 2010
Foreclosure Timelines
January 2nd, 2010 Categories: Default News, Pre Foreclosures, Short Sales, Shortsales
Understanding Foreclosure
Foreclosure– how do you mean that?
Understanding Foreclosure Timelines
Foreclosure: a process and an event…
Most of the time, Foreclosure means one of a couple of things; a process, as in “my Brother is in foreclosure”, or it can be an actual event: “that 4600 square foot home went for $243,000 at the foreclore sale the other day…”
You see, foreclosure as a process means the three steps a bank or investor goes through to take a home or piece of property back;
The legal Foreclosure Time-Lines in California:
After you are 60 days past due on your mortgage payment, (or 90 days since your last payment), the bank can file a notice of default:
Then, 90 days after that, the Notice of Trustee Sale can be filed. No earlier than 20 days later, the Trustee Sale can be held-
So;
60 days late = Notice of default
90 days = Notice of Trustee Sale
21 days= Trustee sale
The fastest your bank can take a home back in California is 171 days late on payments or 211 days since the last payment. Most banks and servicers are being very slow to file the initial Notice of Default- almost all wait over six months. The Notice of Trustee Sale may take up to a year after the Notice of Default is filed. Even after the Notice of Trustee Sale is filed, the banks/sevicers are now re-scheduling over 3/4 of the Trustee Sales, many for an additional 30, 60,or 90 days initially and then rescheduling again if they have made contact with the homeowner and there is any hope of a loan modification or short sale. They don’t want any more foreclosures unless it is clear there is no foreclosure solution. The writing is on the wall: Less foreclosures and more short sales for 2010 and beyond!
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HAMP LOAN MODIFICATION SUCCESS RATE
January 2nd, 2010 Categories: Pre Foreclosures, Real Estate News
Loan Modification Report for December–
How many homeowners have found a long term solution through HAMP? The numbers show catastrophic failure!
At worst 4.5% at best 13%…
I have been keeping track of the two most important numbers in the Obama Administrations HAMP Progress report that comes out every month… The number of Trial modifications folks have entered into the program, and the number of permanent modifications, or folks that have been through the three month program and then qualified for and approved their final modification offer from the bank-
According to the charts: through November: (November’s numbers included)
Number of Active Trial Modifications
697,026
Number of Permanent Modifications
31,382
So only 4.5% of these loan modification starts have actually gone on th become a long term fix for families–
Now I’m sure this percentage will increase– Almost half of the 697,000 homeowners were added in September and October, so their numbers might start showing up as permanent modifications in January and February, but what about the 250,000 that were added before September, does this really mean that at best case only 13% of people will be able to find a long term solution through a loan modification?
Foreclosures and short sales will be the only solution for the other 87%?
I’ll keep you posted and revisit this on the 10th of January, when the December numbers come out…
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