Few market watchers would argue that foreclosure actions haven’t been speedy, nor have lenders even managed to keep up in many cases with new homes going into default. Fannie Mae issued an alert to mortgage servicers at the beginning of the year stating that fees would be levied going forward for severely aged loans. However, the situation has been escalated.
Under guidance from its regulator, the FHFA, Federal Housing Finance Agency, Fannie Mae has alerted mortgage servicers that it will now levy fines for actions they take. Or, in this case, actions they’re not taking will be finable. Fannie Mae isn’t disclosing the names of servicers, but says that invoices for fines are on the way and will be based on the outstanding principal balance of the mortgage loan, the applicable pass-through rate, the length of the delay, and any additional costs.
In August, Fannie Mae updated time frames in which servicers are expected to complete the foreclosure process. It varies by state, but some examples include:
-Florida – 185 days
-Maryland – 90 days
-Nevada – 150 days
-Upstate New York – 300 days
-Downstate New York, including the city – 420 days
Fannie Mae says this about their fees:
"A compensatory fee not only compensates Fannie Mae for damages but also emphasizes the importance placed on a particular aspect of the servicer's performance. In some cases, a compensatory fee will relate to the action the servicer took, or failed to take, in handling a specific mortgage loan. At other times, the compensatory fee reflects the impact of the servicer's performance deficiencies on Fannie Mae’s cash flow."
Who is Dean Graziosi?
Are People Actually Successful?
Does Dean Practice What He Preaches?
What Deals Are The Students Doing Right Now?
Considering how.....
Folks -
In a certain business sense, this action may have a slight bit of credibility to it. Staffing must be paid, obviously.
But, here's the deal as I see it.
(Everyone has the option to jump in here)
In the late 1990's, Bill Clinton re-wrote the Mission Statement for Freddie & Fannie, to the point that afterwards, Loans were being given to people who would previously never qualify. They came up with these bait options to get people into houses (3-2-1 increasing interest rates is one of the more common ones). Houses were easier to get if you built brand new than if you wanted to buy one that was already built. Vinyl Villages began to popup all over the place.
All of this was done, by design. Fannie & Freddie (and AIG) all get their resources from THE FED, and THE FED controls the U.S. currency - not Congress. It should then be no shock that the same people within THE FED were also being put in charge of Fannie & Freddie. Franklin Raines was in charge from 1999-2004 and walked away with a $120million exit bonus, which he has never had to pay back. That's $120M of taxpayer funds, for just one guy, who coincidently ran Fannie & Freddie into the ground, helping to setup the Real Estate Bubble of 2006-7.
This is all historical fact. But, for us, the question becomes, how does this affect our ability to be great Dean Graziosi Graduates (?)
For now, I'm not sure that it does actualy affect our bottom line on potential profits. It may, however, cause Banks to become more willing to work with an Investor as they work to rid these items off their books.
Opinions?
and.....
the credit default swaps that were created to protect against the coming defaults, set up the "perfect storm" that made the housing market go into free fall.
Rising insurance rates in our local market in the late summer of 2006 put a chill on purchase contracts that were already in place, as buyers bailed out and retreated from their plans to relocate/purchase in our area.
Banks are more atuned to cleaning their books of the troubled assets, as many are now operating under regulatory agreements with the Comptroller of the Currency, and that means OPPORTUNITY for all of us!
Time to get to work!
Banks are swamped with defaults
and the communication within their different departments is non-existent.
The bank doesn't communicate with the 'servicer' (i.e. the collection agency in charge of collecting the past due amounts); and neither of these two 'companies' communicate with Fannie or Freddie.
So... when you're trying to purchase a short sale before it goes to foreclosure... well, if you can figure out a way to get the bank, the servicer, and Fannie or Freddie to all be in agreement, then you'll be able to successfully buy a property before it is auctioned.
It may be less complicated with smaller banks, but if anyone accomplishes purchasing a short sale with a big bank, kudos for you!
Wishing everyone success,
Valerie