Increasing number of REO properties keep driving down prices

Tuesday, February 07, 2012

Mortgage loan applications have increased 23% this last week due to record low rates.

Orlando, FL (MBNews.org) -- Historic record low have encouraged many homeowners to refinance according to the Mortgage Bankers Association.

We have seen refinancing activity climbed 26.4% just this week week ending January 13, to its highest level since early August, the MBA reported. Meanwhile applications for new mortgages climbed 10.3% week-over-week.

Time to buy a house? Home prices have fallen and mortgage interest rates are lower than they have ever been.

Miami (MBNews.org) — Time to buy a house? Home prices have fallen and mortgage interest rates are lower than they have ever been.

A recent report from J.P. Morgan Asset Management, titled “Housing: A time to buy,” written by David Kelly and David Lebovitz, made the case for why a home may be a wise purchase. Read more: Mortgage rates plunge beyond expectations.

Although the U.S. housing market remains extremely depressed, we believe that given current valuations and demographic dynamics, now may be the time to consider an investment in housing,” the report said.

Goldman, Two Firms Agree on Foreclosure-Signing Practice

Goldman Sachs will compensate some home loan borrowers for wrongful foreclosures under an agreement reached with a New York state banking regulator.

The agreement, which New York financial services superintendent Benjamin Lawsky reached with Goldman [GS 112.16 -4.06 (-3.49%) ] and Ocwen Financial [OCN 13.28 -0.52 (-3.77%) ], contains several measures to strengthen the oversight of foreclosure proceedings.

It also will allow Goldman's planned sale of its Litton Loan Servicing LP unit to continue.

U.S. asks Bank of America to report back up plans if conditions worsen

The U.S. Federal Housing Finance Agency plans to sue "more than a dozen" major banks for billions of dollars over alleged misrepresentation of mortgage-backed securities sold before the housing bubble burst, the New York Times reported late Thursday.

U.S. asks Bank of America to report back up plans if conditions worsen

U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation.

U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation. Read more...

More Americans at Risk of Foreclosure

The number of Americans at risk of foreclosure is rising, reflecting the U.S. economy’s continued struggles.

The Mortgage Bankers Association said Monday that 8.44 percent of homeowners missed at least one mortgage payment in the April-June quarter. That figure, which is adjusted for seasonal factors, rose 0.12 percentage point from the January-March period. Read more...

New York AG Kicked Off Foreclosure Probe Panel

Iowa Attorney General Tom Miller said late yesterday that his New York counterpart, Eric Schneiderman, had been removed from the executive committee working on a multistate foreclosure probe – and potential settlement – with U.S. banks.

Increasing number of REO properties keep driving down prices

Secondary Market

Thursday, 02 September 2010 15:08

By Elizabeth Martinez

Miami, FL- The supply of REO properties and delinquencies keeps getting larger, which is in turn creating an excess of supply in the housing market. With greater supply, prices for homes go down.

REOs are currently coming to join the market at a faster rate in several of the 35 plus markets that Metrostudy, a leading provider of secondary and primary market data, tracks. This brings more downward pressure on prices, especially at the higher end and faster in some markets than others.

According to reports, cure rates are worsening; this is contributing to an increase in mortgage delinquencies. There are 2.5 mortgages that have returned to delinquency for every one that has actually improved. Nationally, there are 4 million distressed mortgages (REO, in foreclosure or seriously delinquent). There are also an additional 4.1 million households with mortgages who have more than 50 percent negative equity.

Metrostudy said that the number of households is shrinking as people double up, which in turn increases excess supply even more. Excess housing is around 2 million, and the loss of excess households is about 1.5 million. As more excess supply is created by the decline in households and new foreclosures, it will be difficult for existing demand to absorb both, explains Steve Cook from UPI.com. "This is further evidence that we have not yet hit the bottom," the report said.

Furthermore, the report from Metrostudy showed the latest statistics indicating that sales per subdivision were dismal in May and only slightly better in June and in July. "California extended their tax credit, but it will not help much. The former fence-sitters already bought, and that has left behind a vacuum of demand," the report concluded.

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