Fannie Mae and Freddie Mac Short Sales and Deeds-in-Lieu up 27% in 2nd Quarter
Nearly 31,000 borrowers with Fannie Mae (FNMA) and Freddie Mac (FMCC) loans forfeited their homes through a short sale or deed-in-lieu of foreclosure during the 2nd quarter of 2010. This is a 27% increase over the 24,000 transactions completed during the 1st quarter of 2010.
During the same period last year there were 11,700 transactions up from 3,000 the year before.
Federal Housing Finance Agency (FHFA) also reported that loan modification and refinancing by FNMA and FMCC were up in the second quarter. The Home Affordable Modification Program (HAMP) increased 65% while refinancing under the Home Affordable Refinance Program (HARP) increased by 30%. Loan servicers completed 171,200 permanent loan modifications on these types of loans thru HAMP and nearly 88,600 borrowers in HAMP trials transitioned to permanent modifications bringing the two companies HAMP numbers to nearly 225,000. FHFA’s report also stated that approximately 202,000 of the borrowers were in a HAMP trial period at the end of the 2nd quarter, compared to nearly 448,100 at the end of the first quarter. That means minus the 88,600 permanent modifications 157,500 homeowners’ HAMP trials were cancelled as a result of missed payments or inadequate documentation.
FHFA also noted that more than ½ of the modifications completed in the 2nd quarter lowered borrowers’ monthly payments by more then 30%. During this same period the two companies initiated 275,100 new foreclosures, an increase of 12%. Completed foreclosure sales and 3rd party sales totaled 112,400, up 15% from the previous quarter.
Home Affordable Modification Program Modifications down 27%
New data was released on 9/22/10 by Treasury and HUD on the Home Affordable Modification Program (HAMP). Just over 33,000 homeowners received a PERMANENT HAMP modification in August, 2010. This figure is down 27% below the number of PERMANENT HAMP modifications in July, 2010.
The borrowers whom received the PERMANENT HAMP modifications have seen their mortgage payments drop by a median of 36%, or more than $500 per month. Homeowner’s who received these modifications saw their housing expenses fall from 45% to 31% of their monthly income.
In August, 2010, 26,628 TRIAL HAMP modifications were added to the HAMP roster. Currently there are 202,521 active trial modifications. Federal officials are pushing the loan servicers to make decisions for borrowers who have completed the trial phase and either drop them from the program or make them permanent modifications.
The Treasury stated that the most of the cancellations are due to insufficient documents received or missed or late trial payments. In addition, if their principal housing expenses are already less than 31% they do not qualify for the program.
Bank Owned Properties on the Decrease?
Mortgage defaults in California have fallen to their lowest level in three years, market researcher MDA DataQuick said Wednesday. In the Sacramento region, home defaults have dropped 38 percent in the past year.
Read more: http://www.sacbee.com/2010/07/22/2907031/mortgage-defaults-fall-as-short.html#ixzz0uRshD0Rm
Fannie Mae Announces New Incentives for Bank Owned Properties
Fannie Mae “FNMA” took back 130,767 foreclosed properties in the 1st and 2nd quarters of 2010 and they were holding 129,310 single-family Real Estate Owned “REO” properties.
Fannie Mae with such a large inventory announced incentives to buyers and sellers of its REO properties.
On 9/22/10, the program announced a seller assistance incentive for properties listed on their REO website, HomePath.com. They are also expanding the initiative to offer additional incentives to real estate agents and brokers. Qualified owner-occupied homeowners can received up to 3.5% of the sales price which may be used towards the buyer’s closing costs including a home warranty. Buyer’s agents may also qualify to receive a $1500 bonus.
Eligible offers must be submitted on or after September 23, 2010 and must close by December 21, 2010. The maximum amount of days to close escrow is 60 days from acceptance of their offer.
Owner-occupied homeowners can received up to 3.5% of the sales price which may be used towards the buyer’s closing costs including a home warranty. Buyer’s agents may also qualify to receive a $1500 bonus.
Eligible offers must be submitted on or after September 23, 2010 and must close by December 21, 2010. The maximum amount of days to close escrow is 60 days from acceptance of their offer.
Preparing your Home for the Fall Season
- Make Sure there are working nightlights at the top and bottom of all stairs
- Check all window and door locks for proper operation
- Have a heating professional check your heating system every year
- Replace your furnace filter
- Run all gas-powered lawn equipment until the fuel tank is empty
- Have a certified chimney sweep inspect and clean the flues and check your fireplace damper
- Remove bird nests from chimney flues and outdoor electrical fixtures
- Make sure caulking around doors and windows is adequate to reduce heat/cooling loss
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