Foreclosure News

This article can be found at: http://imarketnews.com/?q=node/23231

WASHINGTON (MNI) - Federal Reserve Gov. Dan Tarullo said Wednesday the "hangover" from the housing bubble continues to trouble the U.S. economy, including the overhang of homes awaiting foreclosure, which makes a "strong case" for action in the mortgage servicing industry.

In testimony to the Senate Banking Committee, Tarullo said the Fed has found "significant weaknesses in risk-management, quality control, audit, and compliance practices," and will use many of its supervisory tools, including referring some cases to law enforcement.

Those flaws also could cause the Fed to lower the examination ratings on bank holding companies, he said.

This article can be found at: http://aomid.com/foreclosure-process-creates-domino-effect-on-housing-in...

Slowing of foreclosure proceedings creates domino effect on housing industry.

The current investigation into faulty foreclosure documentation and procedures has caused a major slowdown in the processing of foreclosures, leading to more trouble on the housing market.

In the past couple of weeks, with Congressional hearings focusing on procedural flaws committed by the nation’s leading lenders, many courts throughout the country have slowed down the foreclosure process by forcing the lenders to scrutinize all of their paperwork before continuing with a foreclosure decision.

This article can be found at: http://www.loansafe.org/the-fallout-of-the-home-affordable-modification-...

The government’s Home Affordable Modification Program (HAMP) to help reduce mortgages for borrowers to lower their monthly payment has more than fallen short of its objectives. HAMP has now been labeled a huge failure and although millions of homeowners around the nation have applied for this assistance, only very few will actually be approved for a permanent modification.

This article can be found at: http://www.huffingtonpost.com/nicolas-retsinas/the-foreclosure-pileup-mo...

Imagine a million-car pileup on the highway. Nobody moves. That's the housing foreclosure breakdown: houses stalled, waiting on the housing market highway.

This link is found at: http://abcnews.go.com/Business/wireStory?id=12279667

WASHINGTON (Reuters) - The regulator for Fannie Mae and Freddie Mac on Tuesday backed mortgage servicers going ahead with foreclosure proceedings even as they negotiate possible loan modifications aimed at keeping struggling borrowers in their homes.

Paperwork issues that arise during the complicated foreclosure process are the responsibility of the mortgage servicers to sort out, said Edward DeMarco, acting director of the Federal Housing Finance Agency.

The topic of home foreclosures has become quite a political brouhaha. As of this writing, 50 state attorneys general are getting ready to launch major investigations into the already beleaguered mortgage industry, concerning foreclosure document improprieties.

The mess stems from recent disclosures of falsified documents and forged signatures submitted by banks during foreclosure proceedings. Proposed reforms include compelling mortgage companies to overhaul the manner in which they handle foreclosures, to prevent them from using dishonest paperwork to stampede homeowners out of their dwellings. Violations would carry severe fines and penalties.

http://www.reuters.com/article/idUSTRE69C6P220101013

Foreclosure mess doesn't dent bank stocks
7:21pm EDT
By Dan Wilchins

NEW YORK (Reuters) - Bank shares have proved resilient despite the widening U.S. foreclosure crisis, as investors view the growing furor over foreclosures as a procedural problem instead of a deeper issue of how homes are repossessed.

The attorneys general of all 50 states on Wednesday launched a joint investigation of the practices banks used in evicting delinquent borrowers from their homes, in a move that some experts fear will damage the ailing housing market.

This article can be found at: http://www.marketwatch.com/story/fnf-foreclosure-stall-wont-hurt-title-b...

This article can be found at: http://www.nuwireinvestor.com/articles/demand-for-foreclosures-could-inc...

Published on: Friday, October 01, 2010 Written by: Jeanine Skowronski

Foreclosures made up 24% of all home sales in the second quarter, and sold for 26% on average less than non-foreclosures. With the homebuyer tax credit no longer available, buyers are more likely to seek discounts in foreclosures and short sales . See the following article from The Street for more on this.

Foreclosed homes accounted for 24% of all residential sales in the second quarter of the year, according to the latest data from RealtyTrac, a firm that monitors the foreclosure market.

This article can be found at: http://www.npr.org/templates/story/story.php?storyId=130242115

Record numbers of Americans have lost their homes in the housing crisis, but one option that could help people avoid foreclosure is being snarled by the sheer volume of distressed properties nationwide, bank and real estate specialists say.

Short sales — in which a buyer and seller agree on a price that falls short of covering what is owed to the lender — can potentially benefit everyone involved. The seller escapes foreclosure, the buyer may get a more affordable deal, and the lender gets the property off its books while sidestepping foreclosure-related costs.