A second major mortgage lender, JPMorgan Chase, has stopped foreclosures so it can review loan documents for errors.
“It will probably slow things down for a couple of months while these documents are reviewed,” said Rick Sharga, senior vice president at foreclosure listing service RealtyTrac Inc. “It won’t stop things.”
But if Sharga is wrong and more problems surface, they are likely to slow the foreclosure crisis still more, making it drag on for several more years, other analysts say.
In any case, an increased number of lawsuits are likely. Christopher Immel, a Florida lawyer who represents foreclosed home owners, says many former home owners could sue their lenders, alleging errors in documents.
GMAC Mortgage was the first big lender to pause foreclosures while it reviews past files.
Source: The Associated Press, Janna Herron and Alan Zibel (09/29/2010)
The Obama Administration on Wednesday signed a bill that attempts to inject some hope into the housing rescue program–called Hope for Homeowners.
The original program asked banks to reduce mortgage balances voluntarily to 90 percent of a home’s current market value. The loan would then be refinanced into an FHA mortgage.
The program didn’t work because it forced lenders to sell short with no chance of an upside, says Tom Kelly, a spokesman for JP Morgan Chase.
The new version of Hope sweetens the pot by paying lenders $1,000 for every Hope-refinanced loan and easing the amount they have to write off by allowing loans of up to 93 percent of the market value.
But the most important change is that it allows the U.S. Department of Housing and Urban Development, FHA’s parent agency, to share home-price appreciation with investors, up to the appraised value of the property when the existing loan was first issued.
This bill originally included cramdown legislation that would have allowed bankruptcy judges to modify the first mortgage, but that portion of the legislation was defeated in the Senate.
Source: CNNMoney, Les Christie (05/20/2009)
Great news! We have another short-sale win, this time in Westview! While it’s been a 10mths struggle to get the bank to come around- it’s also been 10 months of preventing an owner from being foreclosed on!! I’m very excited about this win as I have seen many agents attempt to negotiate short sales in the past and fail. “Thank you”, to my wonderful Short Sale partner and attorney, Cameo Nichols.
1716 Rogers Ave will have a new owner in no time! We are due to close on the 18th *send prayers up that all goes well* The new owner is looking forward to being apart of the community and restoring that beautiful double lot home to it’s glory. The old owner is looking forward to this being over and restoring her life after this battle with JP Morgan Chase.
As much of an emotional battle it is, I am willing to continue to help those facing foreclosure and under water in their mortgage, try to obtain a short sale with their bank. The process is long but worth the fight- (the relief on this Seniors face for Rogers was worth every minute). Please feel free to refer me to anyone you know facing these difficulties, most of the time help is not requested and many are living in fear silently until they are foreclosed.
Good things are happening in Westview and West End, let’s keep up the great energy and continue to help our neighbors while building our neighborhood!
What’s a Short-Sale?
A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
Examples: If the unpaid balance of a loan is, say, $100,000 and a property sells for $90,000, under a short sale the lender might accept $90,000 as payment in full.
Def from About.com
“In what may the biggest sign yet that banks are getting serious about attacking the nationwide wave of home foreclosures, giant JPMorgan Chase (JPM) announced on Oct. 31 that it is sharply ramping up its efforts to restructure the loans in its massive mortgage portfolio. For the next 90 days, JPMorgan will not place any new homes into foreclosure. “
See this BusinessWeek article HERE