Just with the rental programs that Bank of America is working on, other banks are going to seemingly follow suit. Wells Fargo announced that it was giving a home to a family of a young girl who is fighting brain cancer. The home, located near the girls hospital in Michigan, is being given to the family mortgage-free.
Distressed real estate has become a big business. Many people are looking to capitalize on people who are uneducated. Be careful when seeking help. If you are delinquent or behind on your mortgage, read this quick article before you do anything.
Banks pulled one of the greatest magic tricks of all time. They made millions of Bank Owned REOs disappear. We all know that all great magicians make things re-appear afterwards. It seems that the banks are about to make the REOs re-appear now.
Earlier this year, Bank of America started the new trend of banks trying to rent their foreclosed inventory rather than sell it. Now they’re going a step farther and looking to give away the homes!
Back in March we told you about Bank of America’s REO Rental Program. In this post, I told you that if Bank of America was successful, other large banks would follow suit. This prediction is now a reality.
What would happen if local governments started seizing homes by eminent domain due to borrower delinquency? What kind of precedent would this set? Is it good or bad for stabilizing the housing market; or should we leave the market alone and let natural forces take over?
I recently sold a two unit property in Long Beach for one of my bank clients. This was an REO. Unfortunately, when it was assigned to me, I had no clue what I was getting myself into…..
The State of California is currently working on passing a Homeowner Bill of Rights. Monday 7/2/2012 the State Senate and Assembly took a big step towards getting this passed as a bill. “The Assembly, by a vote of 53 to 25, and Senate, 24 to 13, approved the Foreclosure Reduction Act”. This Act aims to help homeowners who are still struggling with homeownership. One of the most impactful things the act does is to limit the bank/lender options of foreclosure while they are exploring options such as principal reductions or loan modifications.
The big banks have stopped foreclosing, thus pulling millions of REO homes off the market. Many of these delinquent homes are turning to short sales or REO Rental programs. In the first scenario, banks work a deal with the borrower to sell the home, short of the outstanding loan balance. In the second, banks take homes back and then rent them to the former borrower or another tenant.
One of the things most folks neglected to consider was how the REO rental programs could and would be financed. This presents one of the largest hurdles.
Fannie Mae (FNMA) and Freddie Mac (FHLMC) are on board to play a role in the California Housing Finance Agency’s “Keep Your Home California” program. The whole goal of the program is to reduce the principal balance for homeowners who are underwater on their mortgages.