Strategic Default Monitor – How To Strategically Default

Tuesday, May 9, 2017

Latest New York Foreclosure News - 5-9-2017

New York homeowners are in default mode — again. The city leads the nation in repeat foreclosure filings and the winner in all this is the residential mortgage servicing industry, which collects monthly payments and cashes in on fees for every homeowner’s misfortune. The number of repeat foreclosure filings in New York City far outstrips that of other major cities like Los Angeles, while New York state is No. 1 for repeat foreclosures, outpacing every other state and the US as a whole. In a report prepared exclusively for The Post, Attom Data Solutions found that in New York City last year, roughly 4,900 — or more than half of all new foreclosures filed — were repeats, up from just 5 percent in 2008. Read More at NY Post


QUIET TITLE NY - Mortgage Eliminated and Removed from Property Due to Acceleration of Mortgage Loan and Statute of Limitations. 

In a pair of decisions in which lenders lost the right to foreclose a New York Supreme Court judge and a New York Appellate Court each decided that the 6 year statute of limitations prevented the lender from collecting the mortgage loan. In Augustine Diji v. Deutsche Bank, a judge for the New York State Supreme Court, Kings County, wrote a decision eliminating the plaintiff, Diji's, mortgage. The judge ruled that Diji's mortgage loan was accelerated in 2007 and after 2 failed foreclosure cases Deutsche Bank's time ran out to file a foreclosure. Based upon Deutsche Bank's failure to file in time the mortgage was removed from the property. In a highly watched case, the Appellate Court in Beneficial Homeowner Service Corp. v. Tovar, ruled that the lender's foreclosure case must be dismissed because the statute of limitations had passed. The Appellate justices said that even if a homeowner is not served with foreclosure papers a lender's acceleration of a mortgage loan still remains valid.          


CoreLogic: Foreclosures sink to lowest level since 2007: Serious delinquency rate remains relatively high on East Coast
Serious delinquencies and foreclosures continue to drop, hitting near decade lows in February, according to the Loan Performance Insights Report from CoreLogic, a global property information, analytics and data-enabled solutions provider. Mortgages delinquent by 30 days or more, including those in foreclosures, made up 5% of the market share in February, a decrease of 0.5 percentage points from the year before, according to the report. “Serious delinquency and foreclosure rates continue to drift lower, and are at their lowest levels since the fourth quarter of 2007,” CoreLogic chief economist Frank Nothaft said. “Moreover, the past-due share dropped to 5%, the lowest since September 2007.” Read More at Housingwire.


Brooklyn court moves to dismiss thousands of foreclosure cases: Lawyers say homeowners will be negatively affected by the action
The court said it planned to dismiss all cases filed before Jan. 1, 2016 that have seen no court activity after Sept. 30, 2016. It quietly published a notice of the administrative dismissal in the New York Law Journal on Thursday, April 27, giving parties until Monday, May 1 to contact the court to keep their cases alive. Foreclosure defense lawyers say that while it might seem like a good thing for foreclosure cases to be dismissed, it would in fact be extremely negative for homeowners battling lenders. For one, all of the motions a homeowner had filed taking issue with the lenders' claims would be lost. In addition, many of the delays could be due to the lenders dragging their feet, lawyers say, but dismissing the case without fault to either side would allow the lenders to relaunch their case with a blank slate. Read more at DNAInfo.

Tuesday, November 1, 2016

Latest Foreclosure News 11-1-2016

Freddie Mac Plans to Make Crisis-Era Foreclosure Prevention Permanent 

Freddie Mac is working with it's regulator the Federal Housing Authority to "create permanent foreclosure-avoidance programs as" HAMP is set to expire this year, December 31, 2016 and HARP is set to expire on September 30, 2017. Read more at HousingWire.com.

Monday, October 31, 2016

Boomerang Borrowers are Here!!

Housing Wire reports on the rise of the "Boomerang Borrower". Essentially, a "Boomerang Borrower" is a borrower who has established "responsible credit behavior" and "improved" credit scores. These borrowers, once hit by the 2008 and 2009 financial crisis (foreclosure, short sales, etc.), are now experiencing the removal of negative credit data from their credit report due to the seven year limit for negative information. Thus the opportunities for this "group to qualify for mortgage loans" are growing. Read more here at HousingWire.com.

Thursday, September 29, 2016

New York Foreclosure Alert

New York recently adopted sweeping legislation to reform the foreclosure process. New York's Governor, Andrew M. Cuomo, signed legislation into law that:

1. Enhances the effectiveness of settlement conferences for homeowners by prescribing the rights and duties of the parties and clarifying how the process should work to best protect homeowners contesting foreclosures and prevent them from losing their homes.

2. Establishes a Consumer Bill of Rights informing property owners of their rights in foreclosure proceeds to prevent people from losing their homes.

3. Creates the Community Restoration Fund (CRF), a new tool for the State of New York Mortgage Agency (SONYMA) to assist homeowners facing mortgage foreclosure. CRF will purchase defaulted mortgage notes from other lenders and offer favorable mortgage modifications to keep homeowners in their residences. CRF will have the ability to forgive a portion of a loan’s principal and make the loan affordable in areas where home values have declined or where a homeowner has experienced a decrease in income.

4. Imposes a pre-foreclosure duty on the banks and servicers to maintain vacant and abandoned properties. The bank has a duty to maintain and secure a residential real property where there is a reasonable basis to believe it is vacant and abandoned, and faces civil penalties up to $500 per violation, per property, per day for failing to do so.

5. Expedites foreclosures for vacant and abandoned properties.

6. Requires a lender to auction a property within 90 days of obtaining a foreclosure judgment. In addition, a foreclosing party would be required to take action to ensure that the property is reoccupied within 180 days of taking title.
7. Establishes an electronic registry of vacant and abandoned properties.

8. Provides a mechanism to “expeditiously complete a foreclosure” and work with land banks, Community Development Financial Institutions, and other local nonprofits to rehabilitate properties and resell them to new buyers.

Wednesday, August 10, 2016

Latest Foreclosure News 8-22-2016

More homeowners taking loan modifications, avoiding foreclosures 8-17-2016
The mortgage industry completed over 100,000 permanent modifications during the second quarter, according to HOPE NOW, the voluntary private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors. Of the 100,000 loan modifications, about 69,000 homeowners received proprietary loan modifications, or in-house loan modifications, and 31,684 homeowners received loan modifications completed under the Home Affordable Modification Program. Some homeowners didn’t qualify for long-term permanent loan modification, in which cases the mortgage servicers looked for a short term options that, in many cases, led to a permanent solution. Read More at the Housing Wire

Nearly 650,000 borrowers to receive more money from Independent Foreclosure Review 8-8-2016
The clock is now at zero for the borrowers eligible for payment under the Independent Foreclosure Review Payment Agreements who have not yet cashed or deposited their check, and their money is going to the borrowers who already cashed their checks. The Fed said last year that borrowers who had not cashed their check had until Dec. 31, 2015 to request a replacement check. According to the Fed, the Independent Foreclosure Review Payment Agreement, overseen by the Federal Reserve and the Office of the Comptroller of the Currency, provided $3.9 billion for borrowers of 13 servicers whose homes were in any stage of the foreclosure process in 2009 or 2010. Read More at the Housing Wire

Wednesday, July 20, 2016

The Current Loan Modification Trend

For the past several months, loan modification activity have been evident to be in a decline according to data from sources such as the Hope Now alliance. Moreover, the vast majority of the modifications were made via proprietary programs, while a smaller portion were completed through the Home Affordable Mortgage Program. However, this drop does not necessarily always indicate bad news as depicted from the analysis described below.

Monday, July 18, 2016

Weekly Alert: The Terror of Payday Loans

Introduction

What are payday loans? Simply put, a payday loan is a short-term loan (originally meant to be lend out for a few days or a couple of weeks) at a relatively high interest rate. However, they're often times targeted to low-waged individuals and are designed to tide them into a situation where they find themselves constantly unable to pay off the resulting interest amount.