A central tenet of Washington economic policy for the past three years has been that the key to ending the recession is stopping mortgage foreclosures, whatever the cost. Well, another new study shows that mortgage-servicing companies are having a terrible time of it, not least because the mortgages are continuing to sour at a rate nearly as fast as they can be modified.
Yesterday's Journal reports that Fitch Ratings looked at mortgages bundled into securities between 2005 and 2007 and managed by some 30 mortgage companies. Fitch found that a conservative projection was that between 65% and 75% of modified subprime loans will fall delinquent by 60 days or more within 12 months of having been modified to keep the borrowers in their homes. This is an even worse result than previous reports by federal regulators. Even loans whose principal was reduced by as much as 20% were still redefaulting in a range of 30% to 40% after 12 months.
The reasons for the high redefault rate aren't surprising. Many of the borrowers never could afford these homes in the first place, yet the political pressure has been strong to modify loans even for these borrowers. As home prices continue to fall in some markets, borrowers remain underwater and many of them simply walk away from the home and thus redefault.
This study has to come as a blow to the Federal Deposit Insurance Corporation, which has invested a great deal of political capital in the modification thesis. It also means that to the extent that public money has guaranteed any of these loan modifications, the taxpayer will be an even bigger loser. Banks don't like to foreclose on borrowers, so the best public policy was always voluntary renegotiation. As for the housing market, the quickest way to begin a recovery is to more quickly let prices find a bottom. On the evidence so far, the mortgage modification fervor has been a giant political exercise with little impact on housing prices.
Source: Opinion Journal Forum
Wednesday, May 27, 2009
Friday, May 15, 2009
Orlando Foreclosures and Short Sales
Today in our country, more homes are being foreclosed on and more people seem to be out of work or looking for a job. However tough things are or get us can help you stay out of foreclosure and save your credit. We also can help you capitalize on and investment opportunity of a lifetime. Florida is one of the top three states that have the highest foreclosure rates in our country. The Orlando area has not been spared from the downward spiral our country is currently in. For the first time in many years, even visitors to Disney are dropping as more people world wide wait to see our countries next move.
Now for the good news. Orlando has produced some beautiful majestic looking and feeling homes in the past several years and with all the economic struggles out there we now have many of those same homes in foreclosure. How is that a good thing, you may ask? We can offer you now a home that may have sold 3 years ago for $300K for less than $150K now. Now here is the catch, because you knew it was coming. The market is down, way down. You are buying a foreclosure for less than half the original price, however for the next few months it may not gain any value, bad news right. Now listen to this part; did you realize that the home that you could get for half price will most likely double or triple in value over the next 5 to 10 years? That’s right the economy will not stay in this depressing low forever. Orlando was and still is one of the greatest cities to live in the world so now we have you an investment with the opportunity to grow.
Better news for you is that we also are at some all time low interest rates on mortgages. So over the next few years as you make improvements and sit on that house, your investment grows fast and since you most likely have locked a 5% or lower rate your payments have been small. We like to pride ourselves in getting the customer with one of our agents that best matches them. We make sure that the focus of our team is on you the buyer or seller if you are selling. We make the transactions easy and fast and we are with you throughout the whole process. We want the Orlando area to be the biggest and best as we crawl out of this funk we are in and we want to say we went from top 3 in foreclosures to top three in home sales. Let us make your investment work for you.
Wednesday, May 13, 2009
New website of interest - Florida Short Sale Agents .com
Florida short sales can help people, who are behind on their mortgage payments, can no longer afford their homes, but want to avoid foreclosure regardless of good or bad credit. We service the South Florida tri county (Broward, Miami-Dade, & Palm Beach) metro areas like Miami short sale - Fort Lauderdale short sale & Palm Beach Short Sale.
New South Florida Real Estate website of interest - Florida Realty Agents .com
Provides services to home buyers and sellers in Southeast Florida, including FREE MLS (multiple listing service) search, new construction homes, preconstruction property, foreclosures, short sale and bank owned REO property in South FL. They are experienced real estate agents and real estate brokers that can represent you in the buying process as a buyers agent or help you in selling a home in (Broward, Miami-Dade & Palm Beach) county.
Wednesday, May 6, 2009
Ask the Real Estate Professionals of Orlando
Do you have questions concerning the sale of your current home, the purchase of a new home, foreclosure or short sale programs, or just need some professional real estate advice for the Orlando area? Well, take comfort in asking the real estate professionals of Orlando who have the knowledge you need when it comes to real estateand the experience you desire in a real estate agent. Working side by side with an experienced Orlando realtor can mean the difference between the joys of purchasing a home or the costly effects of real estate transactions that have gone wrong. Make sure you are secure from any real estate misfortune and work with the real estate professionals of Orlando who have the knowledge required in conducting top-quality real estate affairs.
Whether you want to invest in foreclosures, homes in short sale programs or you're just looking for a wonderful bargain in the real estate world, you can find just what fits your desires when you work with the real estate professionals of Orlando. You will have the latest properties available to you as they are listed in the market as well as the latest information on the hottest real estate areas. Enjoy knowing that you will not miss out on the latest real estate that comes available when you rely on the professionals who have been serving Orlando’s real estate needs for years. When you work with the experience provided with the top-quality real estate professionals, you will be sure to have a joyful and exciting experience.
Even if you have found yourself in the middle of a foreclosure or you have fallen victim to the struggling economy and can no longer afford your current home, you can count on the professional team of realtors serving your Orlando area to guide you in the best route for selling your home and protecting your credit. A vast population has found themselves in the middle of a horror story when it comes to losing their homes; however, you can protect yourself from the same nightmares by working with a real estate company that offers you the care and knowledge you need when financial distress hits your family. Although you are having to sell your home, your real estate needs and concerns rest in the hands of professionals who treat your real estate needs as if they were their own. Put an end to the sleepless nights and the stress of worrying about your real estate adventures and take comfort in the fact that you are working side by side with the professional real estate team of Orlando that cares about your real estate future.
Subscribe to:
Posts (Atom)