Tag Archives: Foreclosure Moratorium

Despite an increase in new and existing home sales, home prices in 2010 slumped to their lowest point in December, according to a recent report by mortgage technology company FNC. The FNC Residential Price Index (RPI) attributes the decline in part to increased sales of foreclosed properties, and higher distressed-property discounts. According to the index, home prices declined for the seventh straight month in December, ending the year with the biggest one-month drop of 2010.

With loan modifications on a steady decline, the analysts at Fitch Ratings say the common thread running through the industry has become when will the servicer foreclose as opposed to how can a distressed borrower stay in their home. Fitch's analysis of loan mod trends shows little improvement in success rates. While alternatives like short sales are modestly improving loss severities, the agency says servicers report borrowers are electing to remain in their property longer by staying on through the extended foreclosure process.

A Virginia housing advocacy group released data this week that shows the housing circumstances in rural Virginia are arguably some of the direst in the nation. Key findings of the report say that the largest increase in foreclosure filings last year occurred in rural Virginia, easing only slightly when banks began moratoriums to review their foreclosure processes.

Marshall & Ilsley Corporation (M&I) has extended its foreclosure moratorium for distressed homeowners through March 31 as part of its Homeowner Assistance Program. M&I originally instituted the foreclosure freeze in December 2008, as has been a typical practice for many lenders around the holiday season since the housing crisis set in. The company has been regularly extending its suspension on home repossessions ever since to afford customers who are struggling with their mortgage payments the opportunity to keep their homes.

There has been no shortage of reports of state attorneys general seeking accountability from servicers that they allege mishandled foreclosures. Now it's being reported that attorneys general in all 50 states are near to reaching settlements with the nation's top five mortgage servicers, including Bank of America and GMAC Mortgage. The states are looking to develop separate agreements, rather than one encompassing settlement; and they plan to pursue a civil investigation rather than a criminal one.

Recent market data analyzed by Lender Processing Services (LPS) highlights delays in the resolution of unpaid mortgages after the robo-signing scandal, and reveals congestion in foreclosure pipelines where loans are languishing and further adding to the shadow inventory of properties that will ultimately become REO and could slow home price appreciation. At the end of November, nearly 2.2 million loans were 90 days or more past due but not yet referred to a foreclosure attorney. Of these, one-third have not made a mortgage payment in at least a year.

After reviewing a report and recommendations presented to him, New Jersey Chief Justice Stuart Rabner announced on Monday a series of steps to protect the integrity of foreclosure filings in the state. The report featured a review of robo-signing irregularities by mortgage lenders and servicers and included analysis of actions other states had taken.

A judge last week declined to issue a temporary restraining order against GMAC Mortgage's foreclosure and eviction procedures in Maine. This decision frees the mortgage servicer to proceed with foreclosure sales and evictions it had temporarily halted as part of an agreement with Maine Attorney General Janet Mills in November.

Freddie Mac said Wednesday that it has ordered all foreclosure evictions involving occupied single-family and 2-4 unit properties to be suspended from December 20, 2010 to January 3, 2011. The policy applies to all homes with Freddie Mac mortgages. It's become a common practice for lenders to temporarily halt evictions during the holiday season. Fannie Mae and most other large mortgage providers are expected to follow suit.

American Home Mortgage Servicing, Inc. (AHMSI), headquartered in Texas, is fighting back against the lawsuit filed against them yesterday. Filed by Ohio Attorney General, Richard Cordray, the lawsuit against AHMSI alleges the company was under numerous violations of the Ohio Consumer Sales Practices Act.