HUD & Treasury to help foreclosure market?
In 2009, foreclosure rates shattered records a the number of homes that received foreclosure notices hit 2.8 million, up 21% from 2008 and up 120% from 2007 according to RealtyTrac‘s recent foreclosure data. Foreclosures are clearly on the rise and various signs point to this trend continuing.
In response to what some call a foreclosure crisis, HUD (the Housing and Urban Development Department) vows to take action to speed up the resale of foreclosures by waiving a major FHA rule (that prohibits insuring a mortgage on a home owned by the seller for less than 90 days) from February 1, 2010 to February 1, 2011. HUD noted that they will keep a strict supervisory role in this process to avoid predatory practices.
“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David Stevens said in a Reuters report.
The Treasury Department pledged to step up efforts on their end as well to improve HAMP (the Home Affordable Modification Program) which analysts note is not working. Only 25% of those eligible for a modification have been helped, up 1% from November which some read as a move in the right direction while the Treasury realized it’s a tiny step that could be much greater.
“It’s marginal progress,” Washington, D.C.-based mortgage industry consultant Howard Glaser told Reuters. “It’s helping the borrowers who have received the modifications, but systemically, the program is insignificant,” added Glaser. “With the wave of foreclosures ahead, it’s kind of like fighting a forest fire with a squirt gun.”
realdiggity
January 19, 2010 at 7:35 am
HUD and Treasury Vow to Help Stabilize Real Estate Market: comments https://bit.ly/7dnsvP
Patrick Hake
January 19, 2010 at 3:42 pm
This is great news regarding the moratorium on the anti-flipping rule.
Hopefully this will incentivise even more investors to purchase these homes at auction and then resell them at a market rate to a financed buyers.
Before this change in our area, many of the flipped homes were going to buy and hold investors at a discount and most of the REO homes were going to cash and high down conventional buyers, at the exclusion of FHA buyers.
The banks seem more motivated by expediance and moving a file off their desk, than they are by the bottom line. I suspect that investors who purchase homes at trustee sales to flip will be more motivated by the bottom line and will therefore consider a higher offer from a pre-approved FHA buyer over a lower offer from a cash or conventional investor.
BHG Real Estate
January 19, 2010 at 3:45 pm
HUD and Treasury Vow to Help Stabilize Real Estate Market https://ow.ly/YaFS
Mike Jenkins
January 19, 2010 at 7:52 pm
Lani, interesting blog post at
frontporchrepublic.com/2010/01/the-politics-of-ingratitude/
by John Médaille, a Catholic theology instructor and real estate agent.
Excerpt:
“This attitude of “socialism for me and capitalism for thee” is widespread. I am a member of the Real Estate profession, and I reckon that 99.79% of my colleagues are ardent believers in the “free market.” They also demand that the government support the housing market. Indeed, few markets are as government-dependent as is the housing market, and Realtors divide their free time into complaining about government interference and demanding more government support”
This is exactly the thing that drives me crazy about AgentGenius and the real estate profession in general.
Budi Waluyo
January 20, 2010 at 2:10 am
Surprising news. Fantastic data. In my region, property sales even has stuck for two years.
Portland Condo Auctions
January 20, 2010 at 6:40 pm
The biggest problem is the fact that we think the banks are too big to fail, yet it was their poor screening that allowed so many homes to be sold to people who cannot afford them.
-Tyler
Angry Customer
February 28, 2010 at 10:25 pm
RT @agentgenius: Earlier this month, the Housing and Urban Development Dept which oversees the Federal Housing Ad… https://bit.ly/7x8ROg