Just in time for the holidays, Fannie & Freddie halt foreclosures
Both mortgage giants released similar statements earlier today asking their attorney’s and the companies that service their loans to stop everything on foreclosure proceedings. No more foreclosure sales during the time period of Novermber 26th through January 9th. The reason, to allow the new streamlined program that was announced on November 11th time to effect on December 15th.
Fannie Mae estimates that 10,000 people will be allowed to stay in there homes while Freddie Mac says about 6,000 homeowners will benefit. The new streamlined program on FHA loans will help borrowers who have missed three payments on their homes. The program is aimed at allowing borrowers obtain more affordable mortgages.
An excerpt from the Freddie Press Release:
“By working closely with FHFA and our servicers, Freddie Mac is on track to help three out of every five troubled borrowers with Freddie Mac-owned loans avoid foreclosure this year,” said Freddie Mac Chief Executive Officer David M. Moffett. “Today’s announcement builds on this momentum and provides a new measure of certainty to many of these families during the holidays.”
It is a temporary suspension on foreclosures to allow the 27th loan servicer part of Hope Now implement the new streamlined modification program.
Banks Halting Foreclosures on Twin Cities Homes
Big banks are starting to put a moratorium on homes that face possible foreclosures around the Twin Cities and nationwide. Citigroup becomes the latest big lender to put basically a holding period on the initiating foreclosure process on troubled borrowers.
Citigroup joins JP Morgan Chase and Bank of America to step up to plate. Depending on where the borrower is in the foreclosure process.
Most moratorium periods will last 90 days, the only catch is… You have to contact the lender and be in good standing! Statistics have show that actually less than 50% that face foreclosure actually contact the lender for workouts. The first step when facing foreclosure is contact the lender and nobody is doing it. They just let it go without talking to anybody.
I have laid out some numbers for loan modifiers here for some help
The federal government has been slow to act with all the so-called bailout monies and how to apply portions of it mortgage modifications.
Updates to Minnesota Home Search
New updates are here (or close) to the home search on Living Twin Cities. The great people over at Diverse Solutions are at it again, delivering the best search options for consumers interested in searching the web for homes.
Yes, Foreclosures are now available
The biggest update is the ability to search for foreclosures in Minnesota, this that is all that anybody wants to buy these days. It has always been hard to identify properties that are in foreclosure, distressed or bank owned homes (kinda like a shot in the dark), but now since they are so ‘mainstream’ they are easier to find. Also available will be the opportunity to search form homes in Minnesota that are in default, short sale or pre-foreclosure.
Plenty of other features
The home search should always be easy and fast, giving you what you want. Here are some of the latest features:
- Search for FSBO (For Sale By Owner) homes and Zillow homes that are listed that are ‘Make Me Move‘ homes
- If you choose to save your searches, you can make notes about properties that you like
- Wondering what homes are falling in price, search for homes with a percentage price drop over a period of days
- Search for homes in a specific school district only
- RSS Feeds available for city/community/tract
- and as always, the fastest search around with no load time
So there you go, knock yourself out and let me know what you think in the comments below!
When can I buy a home again after a foreclosure, short sale or bankruptcy
Getting some questions lately in regards to foreclosures and short sales about financing in the future. First off, never a good sign when you get those questions because of the circumstances. Thought I would look into the matter and provide some details.
These are just some general guidelines and it is important to note that each lender may have different guidelines when it comes to financing if there are previous foreclosures, short sales or bankruptcies in the credit history.
FHA loan guidelines are a little more lenient than conventional guidelines
- Foreclosure/Short Sale 3 years after foreclosure has been completed
- Chapter 7 Bankruptcy 2 years after charge off
- Chapter 13 Bankruptcy 1 year (everything must be paid off)
Conventional loans however might take a little more time in order to obtain financing, four years. A credit score of 680 or higher is a general rule of thumb to go by along with re-established credit and satisfactory explanation. This goes for all foreclosures, bankruptcies and short sales.
Veteran Administration (VA) loans typically take up to two years after a foreclosure, short sale or bankruptcy. The borrower(s) must provide proof that there is no outstanding debt. Credit must be re-established along with an explanation letter and full VA entitlement.
Some lenders will not allow a mortgage within 7 years if you are applying with the same lender that the foreclosure or short sale occurred through. They probably have a bad taste in their mouth from the previous mortgage.
Lender foreclosure auction returns in Minnesota
Lender Bank Foreclosure auction returns to Minneapolis on November 15th and 16th. Another 400+ homes up for grabs. This auction was just here over the summer, lenders must be getting desperate if they are pulling REO properties after a few months on the market. I recently had a listing in a neighborhood where two properties were pulled to be in the auction after limited time on market. There might be some good finds, although I am sure anybody and everybody will be there given the amount of annoying commercials on television.
Make sure to get inside the house early to inspect the property before you place your bid. Public open houses are Saturday November 1st and 8th as well as Sunday November 9th. The houses are open from 11am to 4pm all days.
I have plans to be there. Let me know if you are going and we can meet up.
Will this be what most neighborhoods are like during Halloween…
House Blows Up In Minneapolis
A vacant multi family home blew up on Sunday. The cause: copper thieves stealing copper pipping.
The house is said to be vacant for over a year, but the gas is still on in the house? WTF, why do gas companies shut gas off at the meter in -40 degree weather and let pipes burst, but leave it connected for over a year while it is vacant?
It’s hard to say if the house was listed or if it was boarded up. It’s an obvious problem with copper thieves breaking into vacant houses around the area. The problem is nobody wants to step up to the plate (lenders) and get these properties sold. They just sit there, with nothing going on.
There is a laugh to the video, the people looting the property afterwards for metal and copper scraps, nobody seems to care and step in. A few years back, true story, I witnessed a couple of people drive up to a new construction house that was not finished, yank all the wires out and piping and drive off. Needless to say they didn’t make it far.
Foreclosure Help in Minnesota
Finding the right kind of help online for foreclosure help in Minnesota might seem kind of tricky. If you try to Google certain search terms it can bring you a bunch of sponsored links that are begging for your information to pounce on you. Be aware of programs or individuals that offer an easy or fast fix.
So where to look?
One of the best places to start would be the US Department of Housing and Urban Development. This website provides all sorts of information on where to start for foreclosure help.
In Minnesota, the Minnesota Home Ownership Center is one of your best resource for help. The informative website has an interactive map that directs you to the nearest place to help answer questions that you might have about foreclosures and the process in Minnesota.
Also on the website also gives on advice on contacting your lender to workout options, borrowers workshops and your rights as a homeowner. Remember that you do not have to move right away, there is a process.
REO Properties in Apple Valley, Eagan and Rosemount
REO properties have remained somewhat under control in these popular suburbs. Recently there have been more bank owned REO listings and foreclosures coming onto the market. Some of the listings are short sales as well.
Current Eagan REO Inventory
- 10 Condos
- 15 Townhouses
- 23 Single Family Homes
Current Apple Valley REO inventory
- 2 Condos
- 25 Townhouses
- 22 Single Family Homes
Current Rosemount REO inventory
- 6 Townhouses
- 6 Single Family Homes
Looking at inventory in Apple Valley, there have been a lot of homes that have come on the market lately $300,000 and higher. Most of the REO properties in Eagan are condos and townhouses. Rosemount has yet to feel the effect, but also didn’t have the overbuilding that the other cities have had.
As far as closed REO home sales, there have been 19 closed sales compared to 48 closed sales that are not bank owned homes since July 1st.
Fed says second ring suburbs next for foreclosures
A recent article in the Twin Cities Business Journal touches on the subject of the next wave of foreclosures coming to the second ring suburbs like Apple Valley, Woodbury and Minnetonka. Over 30 zip codes have been classified as potential problem areas with resetting sub-prime adjustable rate mortgages (ARM’s).
The Federal Reserve of New York has some dynamic maps of nonprime mortgage conditions that you can view for statistics. These maps give you a broader overview of zip codes and areas that are heavy with sub-prime loans.
This of course is nothing new with foreclosures in the inner city and outer ring suburbs with straw buyers but these are cities that have so far relatively weathered the foreclosure crisis.
I would have pulled some data but the MLS FINALLY came up with a way to better track REO/Foreclosures and therefore it is hard to compare accurate data from previous years.
-
Powered By
-
Find Me Here
-
-
-
-
-
-
Market Stats