Many clients come in to my office seeking assistance with modifying their investment property mortgages. The first question I am usually asked is “will the bank reduce my principal down to what the property is worth?” The answer is that meaningful principal forgiveness is very rarely offered in conventional “HAMP” or “Proprietary” modifications. Unfortunately, this results in investment properties becoming unaffordable and impossible to maintain.
The Federal Housing Administration has instituted a new program called “Back-To-Work-Extenuating Circumstances” to assist potential borrowers who faced financial hardship during the recession. This program, which began August 15th, 2013 provides a second chance for mortgage applicants who have experienced financial hardship such as unemployment or a severe reduction in income beyond the borrower’s control. This program is designed to assist borrowers with a recent history of foreclosure, judgment, short sale, bankruptcy, loan modification, or deed-in-lieu by acknowledging that their credit history may not fully reflect their ability or propensity to repay a mortgage.
According to the Clerk & Comptroller’s office, new foreclosure filings in Palm Beach County have dropped when compared with June 2012 and May 2013. Last June Palm Beach County had 1,249 new cases while this June saw only 1,001 new filings, a 19.9 percent decrease. New filings also decreased 6.2 percent in June compared with May of this year. According to Clerk Bock, “In June we saw the highest number of deeds recorded with us since June 2006, and most mortgages recorded with us since November 2007.”
Florida remains tops in the nation for the highest percentage of distressed homes and the number of completed foreclosures, a new report has found. The state’s foreclosure inventory (properties in some stage of foreclosure) stood at 8.6% of all mortgaged homes in June, real estate data provider CoreLogic said Tuesday.
While that rate is down from a revised 8.8% in May and from 11.5% in June of last year, it is still more than three times the national average.
Daunte Culpepper’s 2006 signing with the Miami Dolphins was so disastrous that the repercussions are still being felt. In a foreclosure case, the former NFL quarterback has lost a home he bought for about $3.6 million back when he was traded to the Dolphins. He surrendered the nearly 10,000-square-foot home to SunTrust Bank back in April in lieu of foreclosure, Broward County court records show, and the bank dropped its lawsuit against the three-time Pro Bowler earlier this month.
After experiencing years of depression, Florida’s housing market is returning and contains many homes that are being marketed as either short-sales or foreclosures. For anyone interested in potentially purchasing one of these homes, the following information is critically important.
First is the condition and price of the home. Since a foreclosure occurs because the home owner stopped paying their mortgage, they were likely unable to afford to maintain the home as well.
The latest statistics for Palm Beach County’s foreclosure filings are in. There were 1,067 new cases filed during May 2013, down 21 percent from May 2012 which had 1,356 new filings. The amount of new cases for May was only 45 less than those filed in February of this year. There were 962 new cases filed in April, 10 percent less than May of this year and 21.3 percent less than May 2012.
Despite being defeated multiple times in past legislative sessions, the bill designed to speed up the foreclosure process passed the Senate on Friday, May 3rd with a 26-13 vote, largely along party lines. The bill has already passed the House and will go to Governor Rick Scott next for final approval. Concerns about the number of foreclosure cases clogging up the court system have been an ongoing issue for years.
The first wave of checks from the $3.6 billion dollar federal settlement will be mailed this Friday according to the Office of the Comptroller of the Currency and Board of Governors of the Federal Reserve System, with hundreds of thousands of them going to Florida residents. Out of the 4.2 million borrowers who will be receiving settlement checks, a lucky 1,100 residents nationwide will receive the maximum payout of $125,000 and about 2.3 million borrowers will receive the $300 minimum.
In the wake of the housing crisis, lawsuits against lenders, and settlements between government entities and some of the world’s biggest banks, an alphabet soup of loss mitigation programs has emerged and re-emerged. To help make sense of all of the available programs and how they relate to your situation, I have prepared the below outline which describes substantially all of the major programs being offered on residential loans today.