Loss Mitigation

In response to the overwhelming amount of foreclosures that could have been avoided through a short sale, Retreat Capital Management Group, a provider of loss mitigation and outsourced fulfillment solutions, and First Team National Default Solutions have formed a joint venture to manage the short sale segment of the loss management process.

The Mortgage Bankers Association (MBA) has put forth a concept for a new forbearance program that would allow borrowers who've lost their jobs to remain in their homes for up to nine months. MBA cites recent statistics that show it takes the average unemployed worker six to seven months to find a new job. MBA says once new employment is secured, the program would serve as a ""bridge"" for the borrower to be considered for the Home Affordable Modification Program (HAMP).

Stewart Lender Services is offering a new solution to help mortgage servicers meet the requirements of the federal government's Home Affordable Foreclosure Alternatives (HAFA) program. The company says it is providing servicers with an effective alternative to costly in-house processing, while improving communication among all parties involved and accelerating transaction completion.

Wingspan Portfolio Advisors, LLC, a Dallas-based mortgage servicer specializing in highly delinquent loans, has announced its selection by the National Association of Federal Credit Unions (NAFCU) Services Corporation as the group's designated special servicer and preferred partner for dealing with defaulting loans. Wingspan will be providing its services to member credit unions in an effort to save as many of their problem loans as possible from foreclosure.

Fannie Mae announced Monday the opening of a mortgage help center in Miami to help distressed borrowers in South Florida with loans owned by the GSE. The Miami facility is the first in a series of local centers that the mortgage financier plans to open across the country. Fannie Mae says the goal is to accelerate the response time for struggling homeowners and improve the company's resolution of problem loans.

Integrated Mortgage Solution, a Houston-based provider of collateral protection resources for the mortgage servicing sector, recently announced its electronic document retrieval and indexing capabilities, which the company says will help servicers increase permanent loan modifications.

In an effort to help Realtors understand the Home Affordable Foreclosure Alternatives Program (HAFA) and its guidelines, the national Association of Realtors has released a brochure about the program and is providing additional resources online, including government forms and guidelines, a video explaining the new federal guidelines, and frequently asked questions.

When the residential housing market took its big spill, real estate auctions became a quick means for lenders to dispose of growing distressed property inventories and a popular avenue for bargain-hunting buyers. The commercial real estate sector, too, now finds itself on a banana-peel floor, and here also the auction forum is proving to be a powerful business practice for tumultuous times.

Despite having a bad rap for being slow and problematic, short sales are quickly becoming a preferred method to dispose of distressed properties. One industry survey shows short sales accounted for a substantial 15.9 percent of home purchase transactions in January nationwide. This foreclosure alternative is becoming particularly attractive in some of the hardest-hit housing markets. Lawmakers in Arizona are considering a bill that would mandate real estate agents there take 15 hours of short sale classes to learn the process.

The administration unveiled a new initiative to help the nation's hardest hit housing markets. President Obama is allocating $1.5 billion for states where unemployment is high and home prices have fallen more than 20 percent. While national indicators point to housing stabilization, local conditions vary considerably. Obama is setting up an ""innovation fund"" for state agencies to develop their own loan modification assistance programs for underwater and unemployed homeowners.