Foreclosures don’t always follow script | via Seattle Times

Foreclosures don’t always follow script | via Seattle Times

Anyone who has purchased or refinanced a home has experienced the onslaught of paperwork at the closing table. Presumably, there is ample opportunity for lenders and researchers to correlate housing data with home owners. However as the Fed researcher in the article states, it’s quite difficult to get accurate and relevant research on foreclosures and delinquencies. “For those of us who want to understand how the foreclosure crisis has affected borrowers and communities, it is frustrating to not have access to publicly available data that can really help us to understand what happened and why,” said Carolina Reid, a research manager for the Federal Reserve Bank of San Francisco. via Local News | Foreclosures don’t always follow script | Seattle Times Newspaper. We will never implement the most appropriate and intelligent housing regulation until there is better measurement & analysis of housing data. It’s a giant lead ball attached to the leg of the housing industry and no one has […]

Mailbag: Short Sale Vs. Foreclosure: How Does Each Affect My Credit?

Question: Short Sale Vs. Foreclosure: How Does Each Affect My Credit? A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for. In this time of option-arms coming due we will see more and more borrowers trying to negotiate short sales as opposed to going into foreclosure. In most cases the borrower are behind on payments and about to go into foreclosure. Some short sales are negotiated simply because a borrower knows they are upside down on their mortgage but has not reached the point where they have late payments. For example, the borrower’s loan is interest only and they have been unable to make principal payments. The original loan amount was $250,000 and they have been making the minimum payment and the loan balance has increased to $263,000. At the same time, the home only appraises for the $250,000 or possibly even less. Because the option-arm period is up, the borrower’s mortgage payments will increase […]

Colorado Foreclosure Update

Here is something I’d like to know. How many investor-owned properties were foreclosed in 2007? What about the first half of 2008? My theory is that speculators getting zero-down, stated income, non-owner occupied, negative amortizing loans contributed more to the unraveling of the credit markets than primary homeowners who got a low rate adjustable mortgage. But here’s the rub, where is the the data that supports my theory? It’s not measured! RealtyTrac just announced that Colorado fell to 10th place in September for foreclosure data. The story can be read here RealtyTrac reports seem more self-serving than a societal benefit. RealtyTrac caters to foreclosure bargain hunters. Reporting these statistics gets RealtyTrac lots of love in the news and the blogosphere and the resulting sensationalism feeds their business model by driving new customers to their service. The problem is that their reporting methodology results in inaccurate measurements and comparisons. There are instances when some Colorado homeowners get counted twice or […]