moratoriums

Apache is functioning normally

Notice of default filings fell a whopping 61.8 percent during September in the state of California, largely due to new legislation that makes it more difficult for lenders to foreclose on borrowers.

The new law, SB 1137, requires mortgage lenders to attempt to make contact with their borrowers, and then wait 30 days after satisfying specific due diligence requirements before initiating foreclosure proceedings.

If a notice of default was filed before the bill was enacted, the lender would need to provide evidence that attempts were made to contact the borrower before taking action.

The sudden impact of the bill is clear, with only 16,352 NODs filed last month, down from 42,790 in August and 36.4 percent less than in the same period a year earlier.

Notice of trustee sales, the final step in the foreclosure process prior to auction, also decreased 47.3 percent from August to just 19,116, but were still up 33.9 percent from September 2007.

There were a total of 23,409 foreclosure sales during the month, a 163.2 percent increase from the same period a year earlier, but 12.4 percent below August’s numbers.

“CA State Senate Bill 1137 has rendered analysis of current activity against prior foreclosure levels useless in understanding market conditions,” said Sean O’Toole, founder of ForeclosureRadar, who provided the September numbers, in a statement.

“What is important to watch now, is how quickly lenders and trustees adjust to the new law. While it is unlikely foreclosures will return to previous levels, given the new requirements; we expect SB 1137 to have no long term impact beyond delaying the foreclosure process for homeowners, and slowing the overall recovery.”

O’Toole, like many of other critics of foreclosure moratoriums, believes such measures will simply delay the inevitable and cause a spike in foreclosure activity further down the line.

Just yesterday, presidential hopeful Barack Obama called for a 90-day foreclosure moratorium for all lenders receiving aid as part of the $700 billion bailout package.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Foreclosure filings fell 12 percent in September from a month earlier, but still increased 21 percent from the same period a year earlier, RealtyTrac reported today.

Default notices, auction sale notices, and bank repossessions were reported on 265,968 properties during the month, putting one in every 475 U.S. households in some stage of foreclosure.

RealtyTrac chief James J. Saccacio attributed much of the month-to-month decrease to new state laws that extend the time mortgage lenders must wait before serving foreclosure papers.

“Most significantly, SB 1137 in California took effect in early September and requires lenders to make contact with borrowers at least 30 days before filing a Notice of Default (NOD),” he said, in a release.

“In September we saw California NODs drop 51 percent from the previous month, and that drop had a significant impact on the national numbers given that California accounts for close to one-third of the nation’s foreclosure activity each month.”

At the same time, he noted that a 90-day right-to-cure notice in Massachusetts had slowed foreclosure filings during the summer, but seemed to just delay the inevitable.

“On the other hand, initial foreclosure filings in Massachusetts jumped 465 percent from August to September after being much lower than normal in June, July and August,” Saccacio said.

“That temporary lull happened after a new law took effect in May requiring lenders to give homeowners a 90-day right to cure notice before initiating foreclosure. But in September, about 90 days after the law took effect, initial foreclosure notices jumped back up close to the level we were seeing earlier in the year.”

That’s certainly not good news for those who support foreclosure moratoriums, as it seems to have simply extended the mortgage crisis without providing meaningful assistance to at-risk homeowners.

Six states (California, Florida, Arizona, Ohio, Michigan, and Nevada) accounted for 60 percent of total foreclosure activity during the third quarter, with California responsible for a whopping 27 percent.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Another year, another word of the year tied to the ongoing mortgage crisis.

Merriam-Webster unveiled its word of the year for 2008, selecting the term “bailout” because it received the highest intensity of lookups over the shortest period of time.

The online dictionary defines it as “a rescue from financial distress,” though more opinionated readers could perhaps express it more strongly.

Regardless, the word bailout has been used frequently in the media, from discussing the fate of Fannie, Freddie, and the big three automakers, to speaking of foreclosure moratoriums and loan modifications for individual borrowers.

The term bailout was also a large aspect of the rhetoric spewed by both presidential candidates as they tried to get a handle on the ongoing housing crisis, a top issue during the storied campaign.

A number of other words in the top ten related to the presidential election, including words like vet, socialism, maverick, bipartisan, and rogue.

Words in the top ten that potentially related to the financial crisis included trepidation, precipice, and turmoil.

Of course it’s not surprising that this year’s word of the year has a lot to do with the mortgage crisis, considering last year’s winner was “subprime.”

(photo: gaetanlee)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Wells Fargo announced today that it expects to report record first quarter earnings of $3 billion thanks in part to the current mortgage bonanza.

“Business momentum in the quarter reflected strength in our traditional banking businesses, strong capital markets activities, and exceptionally strong mortgage banking results,” said Chief Financial Officer Howard Atkins, in a release.

“$100 billion in mortgage originations, with a 41 percent increase in the unclosed application pipeline to $100 billion at quarter end, an indication of strong second quarter mortgage originations.”

The San Francisco-based bank and mortgage lender said it realized roughly $175 billion in loan commitments, mortgage originations, and mortgage securities purchases during the quarter.

The company processed $190 billion in mortgage applications for more than 800,000 customers, a 64 percent increase from the fourth quarter, aided by a record $83 billion month in March.

Additionally, Wells funded more than $100 billion in mortgage loans, serving over 450,000 borrowers via purchase mortgage or refinance transactions.

I wonder what kind of mortgage market share Wells Fargo and Bank of America will end up with this year.

The bank also provided 150,000 “mortgage solutions,” such as loan modifications and repayment plans, to help homeowners stay put during the quarter.

Wachovia has also been a welcome addition to the bank, contributing about 40 percent of combined revenue.

“With the acquisition of Wachovia, we’re now serving almost one of every three U.S. households. Revenue synergies from cross-sell are a huge opportunity much like the Wells Fargo-Norwest merger ten years ago,” Atkins added.

But what about all those billions in option-arms?  At some point they will be a big, big problem, whenever they decide to charge them off.  Moratoriums don’t last forever.

Shares of Wells Fargo were up nearly three dollars, or about 20 percent, to $17.71 in midday trading on Wall Street.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Bank of America said it has eased a policy related to short sales to facilitate more of them, instead of letting properties simply slip into foreclosure, according to a report in American Banker.

Previously, the bank required that 10 percent of the proceeds from a property’s selling price go towards paying off an associated home equity line of credit or other second mortgage.

But BofA spokesman Terry Francisco said the policy changed last month, as the bank now accepts five percent of the sales price when there is no home equity available to holders of first or second liens.

He noted that the policy change is based on the assumption that it will help all parties involved, adding that the 10 percent figure was arbitrary and didn’t take into account potential savings from a short sale versus foreclosure.

Short sales, while not all that attractive either, can result in losses 30 percent less than foreclosures, and with moratoriums drying up and defaults surging, banks seem to be getting a bit more flexible.

In many cases, lenders like Bank of America were being offered payoffs on second mortgages of $1,000 to $3,000, but often declined the payoffs, thereby freezing the deals in their tracks.

Meanwhile, the properties headed further down the path towards foreclosure or borrowers simply gave up and chose to walk away.

Apparently 77 percent of California foreclosures have associated Helocs, which often hinder short sales, but other issues also hold up the deals as well.

Things like the long processing time and limited staff on hand to deal with such transactions, coordinating the many parties involved with the loans, and investigations to determine if misrepresentations occurred, or if the deal is a non-arm’s-length transaction.

Then there are the private mortgage insurers, who aren’t keen to take the first 25 percent loss on the deal, and the real estate agents who must agree to reduced commissions to get the tricky jobs done.

Some experts have also argued that the largest mortgage lender-servicers are refusing to execute short sales in the hopes the real estate market will eventually improve.

Source: thetruthaboutmortgage.com

Apache is functioning normally

During the pandemic, the city of L.A. launched a number of tenant protections. Landlords have not been able to raise rents on rent-stabilized units for over three years, and they won’t be able to do so until 2024.

If you’re living in a rent-stabilized apartment, we want to know how the rent freeze has affected you and the decisions you make as a renter.

Please fill out the below form, and you may hear from a Los Angeles Times reporter. If you would prefer to share an anonymous tip, you can do so here.

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Source: latimes.com

Apache is functioning normally

During the pandemic, the city of L.A. launched a number of tenant protections. Landlords have not been able to raise rents on rent-stabilized units for more than three years, and they won’t be able to do so until 2024.

If you are a landlord struggling to keep up with costs due to the rent freeze, or if you left the rental market, we want to hear from you.

Please fill out the form below, and you may hear from a Los Angeles Times reporter. If you would prefer to share an anonymous tip, you can do so here.

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Source: latimes.com

Apache is functioning normally

Over 10 million Americans are behind on rent due to the effects of COVID-19. The relief bill passed in late December extends benefits and protections to Americans hard-hit by the pandemic, including $25 billion in rental assistance funds.

Designed to help Americans who are struggling to afford rent and are at risk of homelessness, rental assistance funds are available for those who have lost income as a result of the pandemic and meet certain maximum income thresholds. Funds could cover up to twelve months of rent and utilities for those who qualify, plus an additional three months if funds are available.

What’s Ahead:

How to determine if you qualify for rental assistance

In order to qualify for rental assistance, you need to demonstrate that the pandemic has adversely affected you or your household. If a member of your household qualifies for unemployment or has otherwise lost their source of income, you may qualify.

Applicants also need to show that they’re at risk of becoming homeless by demonstrating past due rent or utility bills. Your household must make under 80% of the median income in your area in order to qualify, and funds will be prioritized for applicants making under 50% of the median income.

Your income can refer either to your total household income for 2020, or your monthly household income when you apply. If the assistance is based on your monthly income, you’ll need to document your income eligibility every three months.

How to apply for rental assistance

How you should apply for rental assistance depends on where you live. Different states and cities have different application processes, and many partner with existing organizations or charities in order to effectively distribute funds.

You can look up COVID-19 emergency rental assistance programs in your area using the National Low Income Housing Coalition’s rental assistance tool. If you’re having trouble finding a program, you can get in touch with your representatives, your state’s housing department, or local housing groups in order to get help.

Applications can be submitted by eligible individuals or by their landlords. If your application is accepted, funds will generally be paid directly to your landlord and service providers. You can reapply for additional assistance if necessary.

How much you could receive

Eligible applicants can receive as much as up to 12 months of assistance, plus an additional three months if funds are still available.

Payment for past-due rent that could result in an eviction is prioritized. This means that, while the actual funding amount depends on how much your rent and utility bills are, funding is designed to cover up to a year of rent and related expenses for Americans impacted by the pandemic.

What to do if you’re facing eviction

If you’re facing eviction, you should apply for relief funds as soon as you can. You should also fill out an Eviction Declaration Form and give it to your landlord in order to qualify for the extended eviction moratorium. The moratorium has been extended by President Biden until at least the end of March via executive order.

Individual states and cities may also have additional orders in place to protect renters against eviction. If your landlord refuses to comply with the eviction moratorium, you can get legal help.

What to do if you don’t qualify

Even if you don’t qualify for rental assistance, you could still be eligible for other pandemic relief programs. These include stimulus checks and expanded unemployment benefits.

Stimulus checks

Otherwise known as Economic Impact Payments, stimulus checks are available for Americans who meet certain maximum impact requirements. In addition to the $1,200 payments passed in the spring, many Americans are now eligible to receive an additional $600 thanks to the bill passed in December. You may qualify if your income is under $75,000 for individuals and under $150,000 for households. Parents and guardians can also receive $600 for each eligible child. 

As part of President Biden’s proposed new stimulus package, Americans may also be eligible for an additional $1,400 check if the bill passes. This check, along with the previous $600 check, is designed to add up to a total of $2,000. However, the amount of this third check isn’t yet set in stone, and it may end up being higher or lower than $1,400 if the bill passes.

Unemployment benefits

The December relief bill also extended unemployment benefits after a gap in coverage. These benefits include an additional $300 per week on top of regular unemployment benefits, extending up to March 14th. The benefit is available for workers who earn at least $1 in state unemployment benefits.

Pandemic Unemployment Assistance for freelancers and self-employed individuals is also extended until March 14th. A new unemployment benefit for workers called the Mixed Earners Unemployment Compensation program, adds $100 to unemployment benefits for workers who are both traditionally employed and self-employed if they earn at least $5,000 in self-employment income per year and are already receiving Federal Pandemic Unemployment Compensation.

Eviction moratorium

President Biden has extended the eviction moratorium until the end of March via executive order, and has also encouraged Congress to further extend it until September as part of the new stimulus bill. States and local governments have also issued their own eviction moratoriums. If you’re evicted for a reason other than failure to pay rent due to the pandemic, or are otherwise struggling to find housing, there are a variety of shelters and housing organizations that can provide temporary housing.

Other aid sources

If you’re struggling because of the pandemic, there are a variety of other local aid sources you should take advantage of it. These include:

  • Self Employment Assistance for individuals looking to start their own business after becoming unemployed.
  • U.S. Department of Labor employment or training programs.
  • Temporary Assistance for Needy Families (TANF) for current or expecting parents.
  • SNAP benefits.
  • Food banks like Feeding America and No Kid Hungry.
  • Special Supplemental Nutrition Program for Women, Infants, and Children.
  • The Low Income Home Energy Assistance Program.
  • Local 211 COVID-19 resources.
  • State resources for housing, food, and legal assistance.

Additional rental assistance on the horizon

According to Moody’s Analytics, Americans behind on rent owe a total of $57 billion in rent, utilities, and late fees. This means that the initial $25 billion designated for rental assistance in December likely won’t be enough.

President Biden has called for $30 billion in rental assistance as part of the latest stimulus package on the table. While this bill hasn’t yet passed, it could provide additional relief for Americans struggling to make rent each month. 

Summary

If you’re behind on rent payments and worried about eviction, the latest round of COVID-19 rental assistance can help. If you meet certain eligibility requirements, you may be able to receive funds that cover up to twelve months of rental expenses, plus an additional three months if there are enough funds left over.

If you don’t qualify for rental assistance but are still struggling, there are other resources available to help. President Biden’s proposed economic rescue package could also provide additional assistance for Americans hard-hit by the pandemic.

Read more:

Source: moneyunder30.com

Apache is functioning normally

With moratoriums on evictions throughout the country starting to expire, tenant groups are stepping in to try and save people from losing their homes.

Tenant organizers in South Central Los Angeles last week quickly organized a protest after a local landlord removed one resident’s belongings following their eviction. The landlord had changed the locks on the tenant’s apartment a week after he missed a rental payment, The Real Deal reported. More than 30 tenant organizers arrived at the property to protest his eviction, and blocked a moving company from loading his possessions into a van. They also hired a contractor to remove the new lock with a power drill, before moving the renter’s belongings back into the home.

David Wholman, the landlord, told The Real Deal that he had been “overwhelmed” by the response, saying he’s never seen anything like this happen before. He added that the tenant can stay put for now.

These kinds of efforts to keep renters in their homes following eviction are strategic, said Trinidad Ruiz, a member of the Los Angeles Tenant Union. “If you don’t have possession of the home going into court, you lose, because you’re already evicted,” he told The Real Deal.

It’s said that 27 U.S. states still have moratoriums on evictions in place following the COVID-19 outbreak, but the rest of the country has lifted those rules. And in the states where moratoriums are still in place, some landlords are suing to try and get the bans removed.

A recent report from the Aspen Group said 23 million renters across the U.S. are currently at risk of being evicted from their homes.

President Donald Trump said on August 3 that he might consider executive action to impose a sweeping federal moratorium on evictions while a new stimulus package designed to provide pandemic relief progresses through Congress. The previous moratorium on evictions for federally backed mortgages expired on July 24, and several state moratoriums are also set to expire this month.

Instead of extending eviction moratoriums, the National Association of Realtors has asked policymakers to provide rental assistance for those experiencing pandemic hardships.

“If residents are unable to pay their rent, housing providers will also be unable to meet their mortgage obligations, fund their payrolls and pay their property taxes to state and local governments that have been hardest hit by the pandemic. That, in turn, is likely to catalyze a chain of events with potentially devastating financial and economic effects,” The NAR said in a letter sent to congressional leaders on July 31.

While the wrangling goes on, tenant groups are stepping up their efforts to prevent people losing their homes. Several groups recently staged a protest at the New Orleans city courthouse, barricading themselves inside the premises. Due to this, the courthouse was unable to open and proceed with several planned eviction hearings on that day.

“The reason we’re seeing more militant direct action from tenants is because of weakened protections,” said Patrick Tyrell, a staff attorney at Mobilization for Justice, a nonprofit organization that provides free civil legal services. “What else can they do?”

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
Latest posts by Mike Wheatley (see all)

Source: realtybiznews.com

Apache is functioning normally

With moratoriums on evictions throughout the country starting to expire, tenant groups are stepping in to try and save people from losing their homes.

Tenant organizers in South Central Los Angeles last week quickly organized a protest after a local landlord removed one resident’s belongings following their eviction. The landlord had changed the locks on the tenant’s apartment a week after he missed a rental payment, The Real Deal reported. More than 30 tenant organizers arrived at the property to protest his eviction, and blocked a moving company from loading his possessions into a van. They also hired a contractor to remove the new lock with a power drill, before moving the renter’s belongings back into the home.

David Wholman, the landlord, told The Real Deal that he had been “overwhelmed” by the response, saying he’s never seen anything like this happen before. He added that the tenant can stay put for now.

These kinds of efforts to keep renters in their homes following eviction are strategic, said Trinidad Ruiz, a member of the Los Angeles Tenant Union. “If you don’t have possession of the home going into court, you lose, because you’re already evicted,” he told The Real Deal.

It’s said that 27 U.S. states still have moratoriums on evictions in place following the COVID-19 outbreak, but the rest of the country has lifted those rules. And in the states where moratoriums are still in place, some landlords are suing to try and get the bans removed.

A recent report from the Aspen Group said 23 million renters across the U.S. are currently at risk of being evicted from their homes.

President Donald Trump said on August 3 that he might consider executive action to impose a sweeping federal moratorium on evictions while a new stimulus package designed to provide pandemic relief progresses through Congress. The previous moratorium on evictions for federally backed mortgages expired on July 24, and several state moratoriums are also set to expire this month.

Instead of extending eviction moratoriums, the National Association of Realtors has asked policymakers to provide rental assistance for those experiencing pandemic hardships.

“If residents are unable to pay their rent, housing providers will also be unable to meet their mortgage obligations, fund their payrolls and pay their property taxes to state and local governments that have been hardest hit by the pandemic. That, in turn, is likely to catalyze a chain of events with potentially devastating financial and economic effects,” The NAR said in a letter sent to congressional leaders on July 31.

While the wrangling goes on, tenant groups are stepping up their efforts to prevent people losing their homes. Several groups recently staged a protest at the New Orleans city courthouse, barricading themselves inside the premises. Due to this, the courthouse was unable to open and proceed with several planned eviction hearings on that day.

“The reason we’re seeing more militant direct action from tenants is because of weakened protections,” said Patrick Tyrell, a staff attorney at Mobilization for Justice, a nonprofit organization that provides free civil legal services. “What else can they do?”

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
Latest posts by Mike Wheatley (see all)

Source: realtybiznews.com