Permanent HAMP Mod Conversions Down 27%

The administration released new data on the Home Affordable Modification Program (HAMP) Wednesday. Just over 33,000 homeowners received a permanent HAMP mod in August.

That’s 27 percent below the number of permanent conversions the month before. So far, about 468,000 permanent modifications have been granted to distressed homeowners under the federal program....

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New Foreclosure Filings Up in California for Fourth Straight Month

Source: DSnews.com By: Carrie Bay

California’s notice of default filings, the first step in the state’s foreclosure process, rose for the fourth successive month in August, jumping another 16.6 percent, according to the locally based tracking firm ForeclosureRadar.

The company’s latest data on the Golden State also show that fewer distressed homeowners are finding foreclosure relief. Foreclosure cancellations dropped 11.2 percent in August, while more homes were lost. ForeclosureRadar says there were a total of 17,841 foreclosure sales in California last month, up 15.6 percent compared to July.
The state’s REO inventory increased by about 4,000 properties during the one-month timeframe and now stands at an estimated 108,000 repossessed homes that have not yet been resold, according to ForeclosureRadar’s report.

New foreclosure filings in California are down 16.03 percent from last year, but the pipeline is becoming increasingly clogged. ForeclosureRadar reports that there are currently 155,000 homes in the state in a pre-foreclosure status, another 123,000 properties scheduled for trustee sales, and the time-to-foreclose has lengthened to an average of 287 days.

Starting this month, ForeclosureRadar has also expanded its coverage to include data on Arizona, Nevada, Oregon, and Washington, with drill-down capabilities to the state,country, city, and ZIP code levels on its Web site. The company has been tracking foreclosure activity in these additional states for over a year now to capture historical data and provide details on market trends as part of their inaugural reports.

In Arizona, ForeclosureRadar found that notices of trustee sale dropped 12.2 percent in August after climbing 28.8 percent the month prior. Banks took back more properties at auction than they resold in August leading to a continued climb in the state’s REO, up 4.79 percent from the previous month and a 60.48 percent increase year-over-year.

Among the highlights from the Nevada report, is that after seeing an increase in the average opening bid at auction in July, opening bids in August dropped by 4.6 percent. Foreclosure sales to third parties increased by 26.6 percent, and lenders took a record 324 days from the filing of a default notice to completion of the foreclosures sold at auction last month.

Oregon’s number of properties scheduled for foreclosure sale rose by 17.1 percent in August, as the number of new notices of trustee sale significantly outpaced the number of foreclosures that were cancelled or sold. Overall, notice of trustee sale filings in the state rose by 9.3 percent during the month, and notices of default were up 10.7 percent.

In Washington, foreclosure activity decreased across the board, with notices of trustee sale down 15.8 percent, completed foreclosure sales down 10.8 percent, and foreclosure cancellations down 21.8 percent. Despite these declines, the number of properties scheduled for foreclosure sale rose by 2.7 percent and bank-owned inventories increased 9.4 percent.

“Real estate markets are local, not national, and like other real estate trends, foreclosure trends vary a great deal by location,” said Sean O’Toole, CEO and founder of ForeclosureRadar. “We are excited to be able to bring timely, accurate, in-depth and location specific foreclosure data to the Arizona, California, Nevada, Oregon, and Washington markets.”

Fannie Mae to Sell Foreclosed Homes With Subprime Lending Terms

Source: Lita Epstein Housing Watch

Thought those great low down-payment deals were gone? Think again. If you're willing to buy a home foreclosed by Fannie Mae through the new HomePath program, you may be able to purchase one with as little as 3 percent down. Even better, that 3 percent can be a gift from a family member or other third party, or a loan from a nonprofit, or a state or local government.

Sound a lot like those subprime loans that started this housing mess?

The terms are similar, but the big difference now is that to qualify for those favorable terms in the HomePath program, you must choose one of Fannie Mae's foreclosed homes, and you must buy it "as is."

Here are the terms you can expect:

• Low down-payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only).
• You may qualify even if your credit is less than perfect, as low as 660, when most lenders want a minimum of 700.
• You can qualify as an investor or owner-occupant.
• Down payment must be at least 3 percent for an owner-occupant, but it must be funded by your own savings or by a gift, a grant or a loan from an employer, a nonprofit organization, or a state or local government. Investors must come up with 10 percent down.
• No appraisal is required.
• No mortgage insurance is required, but the terms of the loan may not be as favorable. You need to look at the options with your lender.

To get these very favorable terms, you'll need to buy the home "as is." But if you find the perfect home and it needs some renovation, you'll be able to quality for the HomePath Renovation Mortgage. This type of mortgage will fund both the purchase of the home and some light renovation.

If you are applying for renovation money, you may need to get an appraisal.

Also, to make it easier for first-time buyers or buyers without much cash to get in on these deals, "seller contributions" will be allowed in amounts as high as 6 percent of the purchase price, which means that your need for down-payment money could be greatly reduced. Maximum loan amounts could be as large as $729,750 in the highest-cost areas, $625,500 in others, and $417,000 in the rest of the U.S.

You can find listings of available homes at the HomePath website. Once you find a home you'd like to see, you'll find a link to an agent who can show you the home. If you want to determine what you can afford before getting started on a home search, contact a HUD counselor who can help you set up a budget and figure out what you can afford.

You may also want to talk with a potential lender and get pre-approved for financing. This may allow you to jump to the top of the pile -- if more than one person puts in a bid for the house -- because the seller knows you can qualify for the loan. It also gives you an idea of what price range you should seek out when looking at potential home purchases. To get a pre-approval letter, a lender will need to gather information about your job, assets, income and debts. Then he or she will determine how much financing you're qualified to receive.

If you want to take advantage of some great foreclosure deals out there, this may be the perfect way to get started.

Lita Epstein has written more than 25 books including "The 250 Questions Everyone Should Ask About Buying Foreclosures."