OfflineBig States Ready to Make Deal
The ongoing state negotiations with major lenders has been stalled for a while but may be about to move forward. The negotiations are about financial relief for more than a million homeowners allegedly abused by lenders in their foreclosure processes.
New York and California have been holdouts, but have now indicated that they are willing to join the other states in a settlement that could be in the neighborhood of $26 billion. These negotiations have been going on for more than a year, mostly centered around the “robo-signing” scandal when lenders foreclosed with improper paperwork.
As of Wednesday night, 42 states had signed onto the settlement deal.
Fannie Mae Rolls Out Online Purchase Offers
Fannie Mae has announced that the organization will now take online purchase offers for REO properties. These offers must be made by licensed real estate agents and brokers, but this should streamline the process. Fannie Mae hopes to increase the pace at which their owned properties are absorbed. The company pays a 2.5 percent commission with a $1,000 minimum to listing brokers. They have announced that they will pay a 3% commission with a $1,000 minimum to agents who sell their foreclosure properties.
Faulty Appraisals are Hurting Home Sales
An article at Patch.com states that there is a rise in consumer confidence, but it isn’t yet translating into better home sales numbers. Lenders are getting a lot of the blame for their tighter standards and larger down payment demands.
However, appraisers are also catching flack as well. Complaints are that too many properties aren’t appraising up to the offered purchase price, thus killing deals. Rules adopted after the housing and mortgage crash began in 2007 are creating appraisal inefficiencies and inaccurate appraisals according to some market analysts.
Mortgage Rates Hit Another New Low
Mortgage rates have hit another historic low.
• 30-year fixed rate is now at 3.87%
• 15-year fixed rate is at 3.14%
These are the lowest rates ever recorded in the 40 year history of the Freddie Mac Primary Mortgage Market Survey.
Major Foreclosure Servicer Charged with Forgery
DocX, one of the largest companies that provides foreclosure services to lenders nationwide has been indicted by a Missouri grand jury on forgery charges stemming from foreclosure practices against homeowners in the state.
According to the indictment, DocX is accused of making “mass-produced fraudulent signatures on notarized real estate documents.” The company could face up to 136 counts of forgery, each with a possible fine of up to $10,000.
Hi thanks for sharing and how does this effect us the investor now and in the future, it still looks like a great opportunity for us as well and in helping others get into homes and still buy great deals too, just my thoughts, Jim
jbischoff
This amount is a drop in the bucket for either NY or CA, and will hardly help or penalize anyone. But the silver lining here is this: This settlement is specifically designed to be the 1st suit of many, NOT the last. Which means! The parties responsible for the damage can be sued again in the future! It's not like your average "settlement" which protects the paying party from getting sued again in the future (like DC did with Wall Street in the S&L and most recent bank bailout scandal). Justice is very slow on this right now, but once the ball gets rolling, it's gonna grow and move faster...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
thanks for the info
Attn: DG Admin
There is a lot of unrelated advertisement on this blog. Thanks.