Thanks to Sean and Foreclosure Radar for this report….Wow!
This is scary for America. I believe we need to stop looking for the Government to fix the housing problem, the programs are not working for most homeowners. Not all banks have to participate in them, and bottom line banks don’t care about the $2000 they get from HAFA for releasing their lien NO recourse. They want to be able to collect that obligation from the borrower.
For those people that need to short sale, work with a real estate agent that really understands recourse liens. Liken it to the IRS, taking pennies on the dollar for taxes owed…Your real estate agents goal should be to help you get the property sold for less than you owe.
This may require you to sign a promissory note or contribute to the loss the bank is taking. This will protect you from future judgments from these banks. Remember, a promissory note for pennies on the dollar to settle a debt that will haunt you for the remainder of your life is a smart solution for you. It’s imperative that you are aware of the risks involved when you short sale if you don’t take care of the possible recourse prior to selling the property.
Banks don’t have to accept less than they are owed, a good agent will make sure to negotiate the best possible solution for you to be able to move forward without being hounded by collection agencies. You may not think it’s important now, things are tough and maybe your not employed. But you will get through this crisis and things will get better for you financially. Keep in mind, these banks can obtain judgments and attach your wages in the future.
Foreclosure also leaves you open to second lien holders, only the first mortgage companies are resolved with the foreclosure here in California.
Read the Report….
| LPS’ Mortgage Monitor Report: September Data Shows Foreclosure Timelines Extending; Extreme Delinquencies on the Rise | |||||||||||||||||||||||
| JACKSONVILLE, Fla., Nov. 2, 2010 /PRNewswire via COMTEX/ — The September Mortgage Monitor report released by Lender Processing Services, Inc. (NYSE: LPS) shows that foreclosure timelines continue to increase, with the average number of days delinquent in five judicial foreclosure states (New York, Florida, New Jersey, Hawaii and Maine) exceeding 500 days. At the same time, the foreclosure timeline extension has been significantly more pronounced in non-judicial states. Approximately 275,000 loans started foreclosure during the month and, while delinquencies in September dropped 7.8 percent as compared to a year ago, in the context of “normal market conditions,” delinquencies remain at historically high levels and foreclosure inventories are only slightly below all-time highs. More than 4.3 million loans are 90 or more days delinquent or in foreclosure. Timelines in the 90-days-or-greater delinquency category have continued to increase even as inventories have declined. As of the end of September, 32 percent of 90-days-or-greater delinquencies could be categorized as “extremely delinquent,” with borrowers not having made payments for 12 months or more. The average days delinquent for loans in the 90-days-or-greater delinquency category is 316 days, and the average loan in foreclosure has not had a payment made in 484 days, or roughly 16 months. This month’s report also shows that approximately 1.13 million loans that were current at the beginning of January 2010 are at least 60 days delinquent or in foreclosure as of the end of September 2010 – a month-over-month increase of approximately 120,000 loans. The last two months have seen an increasing trend in this new problem loan category – 1.84 percent of loans that were current six months ago are 60 or more days delinquent today. As reported in LPS’ First Look release, other key results from LPS’ latest Mortgage Monitor report include:
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