MORTGAGE LITIGATION; FORECLOSURE MEDIATIONS; LOAN MODIFICATIONS; SHORT SALES AND DEEDS IN LIEU- ARE THEY NOT TRENDS?
Mortgage lenders are trying to arrange smoother departures for distressed homeowners who can't be saved by loan modifications–and discourage them from trashing the homes on their way out stated the Wall Street Journal here.
THE POPULACE MOVEMENT IS IN FASHION
If you owe the bank one million dollars, it owns you; if you owe the bank one billion dollars, you own it. Collectively, the American people owe the banks billions of dollars, and the collective defaulting of residential mortgages are having a profound affect on banks. So much so, that the banks are doing something about it- seriously.
CitiMortgage announced Wednesday a pilot project that will let some delinquent borrowers remain in their homes without making mortgage payments for six months if they voluntarily transfer ownership to the bank.
REALITY IS THE NEW RAGE
Over the past two years, millions of foreclosures have been delayed by state and federal programs requiring lenders to try to keep borrowers in their homes by easing their monthly payments. But the moment of truth is approaching for hundreds of thousands of households that sought help under the Obama administration’s Home Affordable Modification Program, or HAMP, launched a year ago, as well as borrowers who have sought help through other programs.
FORECLOSURES ARE OLD FADS
“We are concerned that if there is a foreclosure glut at some point in the cycle it would have to have a negative impact on house prices,” and Citi’s pilot program should help prevent a build-up in foreclosed homes, said Sanjiv Das, the chief executive of CitiMortgage in an interview.
The CitiMortgage pilot program provides incentives for more borrowers to use a procedure known as a “deed in lieu of foreclosure,” in which the borrower voluntarily transfers ownership of the home to the lender, which then cancels the mortgage debt. Aside from letting such people stay in the homes for six months, CitiMortgage says it will give them at least $1,000 to cover relocation costs, an incentive sometimes dubbed “cash for keys.”
THE SHORT SALE IS THE IN THING
The Greater Las Vegas Association of Realtors says about 21% of home resales in January 2010 were short sales, up from 19% a month earlier. Potential buyers of homes in short-sale situations have long complained that banks often take months to respond to offers.
BANK OF AMERICA JUMPS ON THE BANDWAGON
Bank of America said it has a pilot program that streamlines short sales. The bank said it would be able to approve sales within two weeks of receiving offers under that program. For homeowners who don’t find a buyer within 120 days, Bank of America will offer a deed in lieu. Bank of America said borrowers will have cash incentives for completing this program.
Mortgage litigation, foreclosure mediation, short sales, and now deed in lieu…are they not trends?