If you’re thinking the recession is over, not so for he housing market. It’s reported that Chase is holding over 600,000 houses vacant. Countrywide/Bank of America is twice as big as Chase - how many do you think are being held off the market from all the banks? More in the next post; however, this article will help you understand where the market is today. http://www.marketwatch.com/story/delinquencies-foreclosures-break-record-mba-2009-11-19-10500
Browsing Posts published in November, 2009
saw this great article on Loan Mods.
http://mandelman.ml-implode.com/2009/11/how-banks-view-loan-modification/
The foreclosure process can be confusing. Many individuals are left not knowing exactly how the process works. Here is a month by month estimate of what happens to give you a better understanding of what happens. Remember that each situation is unique.
Month 1
Day 1 – Mortgage payment is late
Day 15 – Late fee charged if not yet paid
Month 2
Day 30 – Collection calls begin, loan is now in default status
Day 45 – Late charges accrue
Month 3
Day 60 – Lender gives deadline to bring all months current
Day 61 – If you have a conventional mortgage, the loan is sent to attorneys for foreclosure to begin
Month 4
Day 90 – Mortgage payments 1-4 are due
Day 91 – If you have a FHA mortgage, the loan is sent to attorneys for foreclosure to begin
Day 100 – Borrower receives acceleration letter from attorneys. ‘30 day intent foreclose’
Month 5
Day 130 – Acceleration letter expires. Foreclosure by advertisement runs in the paper for six weeks. The borrower now has that period to pay back all late payments. Attorney fees are added to the arrear of loan
Day 144 – Occupant of the property will be served with notice of foreclosure
Month 6
Day 174 – Final day to pay back arrears
Day 175 – Sheriff’s sale occurs at the courthouse in county where property is located
Redemption Period
The redemption period usually is 6 months long, there may be exceptions. During this period the owner has a couple of options, they can either sell the house or refinance to try and remain in the property.
Day 355 – If the loan is not paid off in full or possession is not kept, the owner must surrender the property
As you can see the process takes close to a year. If you are behind on payments, the best thing to do and do it right away is contact your lender. They will work with you to restructure or modify the loan. The longer you wait, the less and less chance you have of the lender doing so.
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1,004. 1,046. 1,083. 1,078. 1,120. 1,185.
Notice a pattern? That’s the number of signed purchase agreements each of the last six weeks in the Twin Cities housing market, growing most weeks at the spring buyer market heats up. The 1,185 pending sales during the week of May 9 were a robust 26.6 percent higher than the same week in 2008. Over the last three months, there have been 2,228 more pending sales than the same time period last year!
There are some caveats to this good news.
1.) Traditional home sales (excluding foreclosures and short sales) over those last three months are down 17.6 percent from a year ago.
2.) Sales above $190,000 are down. 19.2 percent from a year ago.
3.) Sales of new construction homes are down 16.8 percent from a year ago.
Looking through a sharper lens is sometimes the best way to fully understand market dynamics.
Active Listings Current Inventory One Year Ago One Year Change
Inventory as of: 5/18/2009 26,419 33,193 -20.4%
New Listings Current Activity One Year Ago One Year Change
For the Week Ending: 5/9/2009 2,058 2,257 -8.8%
Pending Sales Current Activity One Year Ago One Year Change
For the Week Ending: 5/9/2009 1,185 936 +26.6%
Month Supply of Inventory May 2009 May 2008 Percent Change
7.7 10.2 -24.5%
Supply-Demand Ratio: May 2009 - 5.23 houses for sale per buyer
*Data collected from the Regional Multiple Listings Service, for residential properties in the 13 county region exclusively
