Archives for August 2013

Increased mortgage modifications have scaled foreclosure down

foreclosure defense lawyerThe rate of mortgage modifications has taken an upward turn again to relieve homeowners from foreclosure. As per the recent statistics, during April to June this year, around 204,000 homeowners have already qualified for permanent loan modification. Among all, nearly 160,000 homeowners have obtained proprietary loan modification and 44,860 homeowners have been able to modify mortgage loans by using the Home Affordable Modification Program or HAMP. Numerous mortgage servicers have assisted homeowners thoroughly in mortgage modifications and made it possible to achieve this mark in just 3 months.

As the data suggests, since 2007, the situation has taken a positive turn. More than 6.52 million permanent loan modifications have been completed successfully. Among the 6.52 million, 5.31 million loans are under the proprietary programs and approximately 1,223,449 modifications are under the HAMP. The development is great indeed and it’s expected that by next few years it’ll be possible to control the foreclosure effectively enough.

The steady increase in mortgage modification has already reduced the number of short sales and foreclosure in the course of time. In the second quarter of this year, around 329,000 foreclosures have been recorded. This is lower than the previous quarter which encountered 472,000 foreclosures. There is a considerable 30% drop in the foreclosure count. In 2012, during the second quarter, 527,000 foreclosures took place. So, in one year the total number of foreclosure has dropped by 38%. Not only foreclosure, but there is a reduction in short sales also. In the second quarter, total 81,000 short sales have been recorded which is lower enough in comparison to the last quarters’ 84,000 count. So, short sales have also reduced by 3%. In 2012, 107,000 short sales were completed.

During the first quarter of 2013, 162,000 foreclosures were completed. After increased number of mortgage modifications, the number of foreclosure was 158,000 in the second quarter. There is a 2% reduction in the overall count since last quarter. Exactly one year ago, in the second quarter of 2012, around 185,000 foreclosures were completed. So, in one year, there is a huge reduction of 15% in foreclosure count.
Short sales have reduced by 25% and foreclosure around 15% in the last one year. If you’ll evaluate the numbers according to months, then you’ll be able to detect the gradual change. In May 2013, almost 115,000 foreclosures were recorded. In June the number came down to 97,000, a 16% reduction. There is a 7% reduction in number of short sales also.

All the surveys and their results are indicating to a positive change in the mortgage market. The number of mortgage delinquencies are reducing as per the records but there is perhaps more to check than just figures. Market experts are however hopeful about the whole progress. The vice president of RealtyTrac, Daren Blomquist has stated that marketers are trying their level best to find a way through the numerous bad loans and assist troubled homeowners accordingly. Apart from that, the property prices are also going low now. The curtailed property prices have made it possible for the troubled homeowners to save their homes through mortgage modification.

Blomquist also added, “Lastly, the persistent foreclosure prevention efforts over the past few years have waged a war of attrition on the foreclosure problem, helping to keep a lid on foreclosure activity”. The positive decline in the foreclosure count has definitely made the things more favorable for the homeowners. However, it’s difficult to assume that for how long the situation will be favorable for the homeowners. It’s essential for homeowners to be alert and make the most of the favorable market condition.

Anjelica Cullin, Financial Writer

Home Sales Are Brisk In May 2013 On Long Island

real estate attorneysThere were more homes for sale on the market in May of 2012 than there were in May of 2013 on Long Island. There were more new listings in Nassau County in May of 2013 than there were in May of 2012, due to the resurgence of more buyers coming back into the market place to purchase homes.

Supply And Demand Of Homes On The Market Place

Jonathan Miller, the President and Chief Executive of an appraisal firm called Miller Samuel Inc., recently stated “the supply coming on to the market can’t keep pace with demand.” He was referring to the market place in Nassau County. The strong demand by prospective purchasers is reducing the inventory of homes on the market in Nassau County. Although the inventory of homes on the market for sale has been decreasing, it is still greater than the normal inventory that existed prior to the housing crisis. A 6 ½ month supply of homes on the market is considered a balanced market in New York.

Home Prices Rise Slightly

The sale prices of homes in May rose approximately 4% in Nassau and Suffolk Counties on Long Island. This is far below the 15.4% increase in the sale prices of homes overall in the United States. However the 4% increase is still a positive factor. Rising home prices impact on the confidence in the economy. Cecelia Chen, a housing analyst for Moody’s Analytics recently stated “we are making strides towards a healthy market in terms of pace of activity.” She also stated, “Home prices are rising and construction activity is picking up, home sales are picking up, but the pace is exceptionally strong.”

Any increase in the amount of homes being sold and the prices they are being sold for is good for homeowner’s all over Long Island.

About the Author

helping homeowners stay in their homesElliot S. Schlissel, Esq. is an attorney practicing on Long Island for more than 37 years. His law firm handles a variety of real estate matters, foreclosure law suits, and issues involving mortgage modifications.

Banks Deny Mortgage Modifications

mortgage modification attorneysNew York Attorney General Eric Schneiderman has decided to sue Bank of America and Wells Fargo Bank for refusing to live up to their obligations concerning mortgage modification applications. Attorney General Schneiderman stated “339 people, since October of 2012, have complained about mortgage modification problems with Wells Fargo and Bank of America.” These banks are under an obligation under a $25 billion dollar settlement with the fifty States and the Federal Government to respond to requests for mortgage modifications within 30 days. Attorney General Schneiderman claims Wells Fargo and Bank of America have flagrantly violated their obligations under the settlement of that law suit. Mr. Schneiderman stated 220 of the complaints by homeowners were against Wells Fargo and 119 complaints were made against Bank of America.

Bank Of America And Mortgage Modifications

In response to these allegations, Bank of America representatives say they had already provided relief for more than 10,000 New York homeowners. These mortgage modifications, they claimed, amounted to more than a billion dollars. Bank of America representatives claimed they would work quickly to address the complaints made to the New York State Attorney General. A Wells Fargo representative stated “it is unfortunate that [Schneiderman] has chosen this route rather than engage in constructive dialogue through the established dispute resolution process.”

Foreclosure Defense

More and more homeowners have been taken advantage of by financial institutions to which they have submitted mortgage modifications requests. The loss of documents, the many months of delays, the lack of response from the bank’s representatives are frustrating and aggravating to homeowners. The best way for a homeowner to deal with these problems is to contact a foreclosure attorney who is experienced in taking legal action against banks for their failures to live up to their obligations and State and Federal consumer protection laws.assisting homeowners

Appeals Court Rejects Bad Faith Remedy In Foreclosure Action

loan modification lawyerJudge Patrick Sweeny sitting in Suffolk County Supreme Court, compelled a bank who acted in bad faith during the mandatory foreclosure settlement conferences to grant a mortgage modification to a homeowner. The bank appealed.

The Appellate Division in the Second Department, an Appeals court, held even though the bank failed to negotiate in good faith during the mandatory settlement conferences, Judge Sweeny’s remedy of compelling a loan modification was “unauthorized and inappropriate.” Justice Dickerson wrote in a decision for the Appellate Division, “Courts may not rewrite the contract that the parties freely entered into – the loan and mortgage agreements – upon a finding that one of the parties failed to satisfy its obligation to negotiate in good faith.” Justice Dickerson held in his decision Justice Sweeny’s court order ordering Wells Fargo to comply with the terms of the original loan modification agreement was a violation of the United States Constitution’s contract clause. It was also a violation of the banks due process rights. Justice Sweeny had also ordered that the foreclosure was dismissed.

Remedies For Bad Faith By Banks Regarding Foreclosures

Concerning the lower court’s decision, Justice Dickerson acknowledged the provisions mandating good faith negotiations in settlement conferences were “silent” with regard to the issues of sanctions and remedies. His decision stated “in the absence of a specifically authorized sanction or remedy in the statutory scheme, the courts must employ appropriate, permissible, and authorized remedies tailored to the circumstances of each given case. What may prove appropriate recourse in one case may be inappropriate or unauthorized under the circumstances presented in another. Accordingly, in the absence of further guidance in the legislature or the Chief Administrator of the Courts, the courts must prudently and carefully select from among available and authorized remedies tailoring their applications to the circumstances of the case.”

Judge Dickerson said the Appellate Court saw no reason to disturb Justice Sweeny’s finding that Wells Fargo did not satisfy its obligations. The Appellate Court did not rule out other possible sanctions and remedies against Wells Fargo. However in this case, they found that Judge Sweeny had gone too far.

The Appellate Court took the position the original modification was “merely a trial arrangement, not an agreement for binding obligations of the parties going forward.”

About The Author

homeowner advocatesElliot S. Schlissel, Esq. is a foreclosure attorney representing homeowners concerning foreclosure legal defense, mortgage modifications and other remedies against banks who have been involved in improper mortgage and foreclosure practices.

New York State Sues Bank Of America For Mortgage Abuses

foreclosure lawyersNew York State Attorney General Eric T. Schneiderman has brought law suits against Wells Fargo and Bank of America for violations of the National Mortgage Settlement. Mr. Schneiderman has stated there are more than 339 instances where these banks failed to adhere to standards designed to protect borrowers who apply for mortgage modifications.

Mr. Schneiderman stated at a recent news conference “Wells Fargo and Bank of America have flagrantly violated their obligations under the settlement.” In his interview he said that homeowner’s have been faced with “banks, who in some cases, never even bothered to respond or correct errors in applications on mortgage modifications.”

Nationwide Settlement

In the nationwide settlement, 5 large banks agreed to pay $25 billion in damages to mortgage holders and follow a course of conduct involving loan servicing standards which were designed to protect homeowners. Attorney General Schneiderman said the standards were designed to speed up the process for home loan modifications.

About The Author

foreclosure advocate for homeownersElliot S. Schlissel, Esq. is a foreclosure attorney. He has previously been the President of the Commercial Lawyers Conference of New York, a regional Bar Association. He has extensive experience in helping homeowners with mortgage modifications, foreclosure law suits and other bank related problems.

Foreclosures Increase In May 2013

foreclosure defense lawyersFinancial institutions have gotten more aggressive with regard to foreclosing on homes. The foreclosure rate jumped approximately 11% nationally in May of 2013. In more than 33 states, the foreclosures rates were higher in May of 2013 than earlier in the year.

Demand For Homes Increase

The demand for homes by prospective purchasers’ is increasing in the United States. This had led to an increase in the prices homes on the market are selling for. On an annualized basis, home prices increased more than 12% in April of 2013. This is the single largest gain in sales prices of homes since February of 2006.

Foreclosed Homes On The Market

Foreclosed homes taken back by banks and other financial institutions have been selling faster than in the past. Darren Bloomquest, the Vice President of Realty Trac, recently stated the flood of bank-owned homes entering the marketplace is bad news for home owners. “For homeowners who are current or own their own homes outright, this could slow down the recent rapid rise in home price appreciation, which could mean the value of their homes is not going up as quickly in the short term.”

Underwater Homes

As of March 2013, approximately 20% of all homes in the United States with a mortgage against them were underwater. Although there has been a decrease in the number of homes worth less than their mortgages, it is still an extremely high percentage of homes in the United States.

Foreclosed Homes

In May of 2013, approximately 39,000 homes were taken back by financial institutions in foreclosure proceedings. It is estimated more than 500,000 homes will be foreclosed and taken back by financial institutions in 2013. Although this is a very high number, it is still below the 617,000, taken back by financial institutions in foreclosure lawsuits in 2012.assistance for homeowners

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