THE worsening housing sector due to homes being underwater still has a great effect of our economies recovery, why are you not hearing this topic more often being resolve than being brushed under the rug by the administration. Based on my own survey, I believe that it is because the two governments we have are playing tug-o-war with each other and they are stunning every chance we have for the economy to progress. We will have to endure this type of economic weather till after the election and we sure hope that Wall Street (THE KING) likes who will be our next President.
Foreclosures are on the rise while alternative modifications on these loans are declining. As of November 1, based on the Treasury Department data, about 10.6% of the 615,000+ abolished HAMP trials reached completion of the foreclosure process; this surpasses double the 4.4% of failed HAMP trials foreclosed on as of November of 2010.
Based on the Treasury data, about 39.7% of the cancelled HAMP trials have gone through the banks’ own private programs (we are seeing a sign here), dropping from 45.4% over the same time frame. As compared to last year, more of the Home Affordable Modification Program trials through foreclosure by Mortgage servicers have failed. My guess-timate it takes on average about 250 days in California for a home to foreclose.
Although lower, foreclosure completions as a percentage of borrowers never accepted into HAMP trials are still on the rise. As of November 1, about 7.6% of 1.8 million borrowers denied a HAMP trial were able to finish the foreclosure process and this is a 5% increase from last year. Considered flat over the last year, about 26.5% of these borrowers were given alternative modifications.
The rising foreclosure completions on failed HAMP trials came about at almost every large servicing store taking part in the program and Citigroup has observed the highest increase. About 13.5% of the 71,808 HAMP trials that Citigroup cancelled were able to complete the foreclosure process as of November 1, which is a 3.1% increase from the prior year.
As compared to 1.9% last year, about 9.3% of failed HAMP trials have gone through foreclosure at the Bank of America, they are the largest participants in the program. With an increase of 11.3% from 6.2% at JPMorgan Chase; and 12.8% increase from 6.4% at Ally Financial through the same time duration. OneWest Bank held the highest percentage in the program they are up by 10% from last year. OneWest foreclosed on more than 19% of the 20,000 failed HAMP trials. No wonder, homeowners are frustrated. At 6.7% – almost the same from last year – Wells Fargo obtained one of the lowest percentages of completed foreclosures on such modifications. This may indicate that the data is starting to rebound the higher re-default rates and that servicers are defining poorer performing private modification.
As compared to a 31% re-default rate for other private programs, 17% of the 108,000 HAMP modifications that started in the second quarter of 2010 have gone about 60 or more days behind through the year.
I am still receiving calls from homeowners with many creative ways to come up and challenge banks to modify their loans. Most of these ideas are sent to them via mass mailings from variety of companies trying to take your money. But when we are weak and vulnerable the vultures will come out and circle above us to see if we pass out and then they come in for the kill.
Be very careful that is your hard earned money. Please don’t just give it to someone with a sweet tongue and an unrealistic promise to save your home for you.
The Harp 2 Obama refinancing program is also soon to be proven not too effectively helping homeowners refinance homes.
Always remember to get references, to get proofs in writing that who you want to help you modify your loan has actually approved and finalized loan modifications for customers. Use your own senses and feeling if someone says yes to everything, it’s probably not true.
Again, here are the names and numbers of agencies you can call to file a report on a company that might have fraudulent intentions:
– Call State consumer protection agency at (800)952-5225 .
– You have to call FTC , to complain by phone or internet and then call CA State consumer protection to take action.
– File a complaint in writing, detailing your situation with all names and company names to :
-Office of the Attorney General – Public Inquiry Unit , PO Box 944255, Sacramento CA 94244
-Shortcut to: https://www.ftccomplaintassistant.gov/
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Thanks so much for your support, please call Ken Go of 1st Innovative Finance for your loan questions or modification or short Sale inquiries. Call Ken at 562-697-7028 or write to: [email protected].