NEW YORK – Feb. 15, 2010 – Real estate investors are coming to the same conclusion that housing activists reached at the beginning of the crisis – forgiving principal on underwater loans may be the best way to deal with the problem.
“Principal reduction is the only answer,” says Laurie Goodman, a senior managing director at mortgage-bond trader Amherst Securities Group L.P.
Some activists and investors are asking banks to consider principal reductions so that the amount borrowers owe on underwater loans can be sharply reduced. They say this offers the best incentive for borrowers to continue to make their monthly mortgage payments.
Even though principal reductions are complicated transactions for lenders, even the largest of them are beginning to accept the idea.
“Everybody’s realizing there is a place for principal reductions to a much greater extent than before,” says Jack Schakett, a senior Bank of America Corp. executive involved in loan workouts.
Micah Green, a partner at law firm Patton Boggs LLP, who represents some of the largest investors in mortgages, shrugs the idea that write-downs are unfair to those who continue to make their payments. “Everybody’s going to have to give a little for it to work,” he says.
Source: The Wall Street Journal, James R. Hagerty (02/09/2010)
Monday, February 15, 2010
Justices adopt Fla. foreclosure mediation rules
TALLAHASSEE, Fla. – Feb. 15, 2010 – Lenders will be required to pick up the tab for investigating and verifying ownership and then try mediation before foreclosing Florida home mortgages under new rules approved Thursday by the Florida Supreme Court.
The rules are designed to help Florida’s judicial system better cope with a flood of foreclosures. They follow a December administrative order by Chief Justice Peggy A. Quince telling local judges to adopt a uniform mediation program.
Florida has the nation’s fourth-highest foreclosure rate. Almost 400,000 cases were filed in Florida’s courts last year.
The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.
“They found that many cases were being filed by plaintiffs that didn’t’ own the mortgages any more,” said Miami lawyer Mark Romance, who chairs the Civil Procedures Rules Committee.
Romance said other cases were being filed against people who no longer owned the homes.
“I don’t think there was any ill will or intent to harm someone,” Romance said.
The investigate-and-verify rule should help prevent those kinds of errors and give judges greater authority to sanction lenders who do make false allegations, the justices wrote.
“It’s just going to be another hoop to jump through,” said Anthony DiMarco, executive vice president for public affairs for the Florida Bankers Association, which opposed that provision. “It’s making us find a document we’re already supposed to find.”
The decision was unanimous except for a rule that will require prior approval of a judge before a foreclosure sale can be canceled. Justices Charles Canady and Ricky Polston dissented.
Last-minute cancelations have needlessly delayed other sales, again clogging the system, Romance said.
The Bankers Association did not object to that provision, but DiMarco said borrowers and lenders often cannot reach a settlement until just before the sale date.
“It’s the last chance and people get more serious at the last chance,” he said.
The rules are designed to help Florida’s judicial system better cope with a flood of foreclosures. They follow a December administrative order by Chief Justice Peggy A. Quince telling local judges to adopt a uniform mediation program.
Florida has the nation’s fourth-highest foreclosure rate. Almost 400,000 cases were filed in Florida’s courts last year.
The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.
“They found that many cases were being filed by plaintiffs that didn’t’ own the mortgages any more,” said Miami lawyer Mark Romance, who chairs the Civil Procedures Rules Committee.
Romance said other cases were being filed against people who no longer owned the homes.
“I don’t think there was any ill will or intent to harm someone,” Romance said.
The investigate-and-verify rule should help prevent those kinds of errors and give judges greater authority to sanction lenders who do make false allegations, the justices wrote.
“It’s just going to be another hoop to jump through,” said Anthony DiMarco, executive vice president for public affairs for the Florida Bankers Association, which opposed that provision. “It’s making us find a document we’re already supposed to find.”
The decision was unanimous except for a rule that will require prior approval of a judge before a foreclosure sale can be canceled. Justices Charles Canady and Ricky Polston dissented.
Last-minute cancelations have needlessly delayed other sales, again clogging the system, Romance said.
The Bankers Association did not object to that provision, but DiMarco said borrowers and lenders often cannot reach a settlement until just before the sale date.
“It’s the last chance and people get more serious at the last chance,” he said.
Friday, February 12, 2010
BANK OWNED FORECLOSURE OF THE DAY
Single Family Home
Huge home for this price! Built 2005, 6 bedrooms, 2 baths, 4353 square feet under air. Needs appliances and minor cosmetic work. Homeowner's association fees only $250 per month. Community offers pool, clubhouse, sauna, tennis, basketball, game room and more. ID: FB3810.
Last sold 2006 for $625,000 - Bank asking only $299,000.
***Bank owned properties are extremely competitive in this area and most often have multiple offers the same day they hit the market, sometimes within hours. If you are interested in this property, you need to act immediately. Please call us for details. 561-427-0470.
Andrea DiRico & Peggy Berkoff
Foreclosure & Short Sale Experts - The "Foreclosure Gurus"
North County Properties
19510 US Highway 1
Tequesta, FL 33469
561-427-0470 office
561-427-0522 fax
http://www.ncpflorida.com/
Peggy 561-301-2243 cell
PBerkoff@NCPflorida.com
Andrea 561-543-8715 cell
ADiRico@NCPflorida.com
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