Strategic Default Monitor – How To Strategically Default

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.

Thursday, May 26, 2016

NYS States Mortgage Assistance Program

NYS-MAP

The New York State Mortgage Assistance Program (NYS-MAP) provides home-saving loans to families who are at risk of foreclosure. By averting foreclosure, the program also protects surrounding property values and preserves neighborhood stability.

Program Overview

NYS-MAP is a foreclosure-prevention loan fund that helps homeowners who are unable to get assistance from other sources.