Floridians have received about $8.7 billion in relief under the national mortgage settlement, as reported by the five largest mortgage servicing banks that are parties to the settlement.
According to the latest Settlement Monitor’s report released yesterday, more than 111,000 Floridians have received some type of relief. About $1.39 billion went to mortgage modifications; about $3.15 billion went toward forgiving the entire balance of second liens.
Overall, the average recipient receiving a mortgage modification got $133,560. The average recipient with a second-lien cancellation saw $68,333 removed.
Five banks participated in the settlement, with their numbers confirmed by the Monitor in an independent audit. The five banks include Ally/GMAC, Bank of America. Citi. JPMorgan Chase and Wells Fargo.
“Today’s report indicates that 111,000 Floridians have benefited from $9 billion in relief – significantly more than the $8.4 billion that we expected when we entered the settlement,” says Florida Attorney General Pam Bondi.
Nationally, the five lenders have distributed $50.63 billion in direct relief to over 620,000 homeowners, at roughly $81,000 per homeowner.
A chart detailing the Florida money distribution by type of consumer and bank is available online in PDF format.
Source: Florida Realtors®
Wednesday, May 22, 2013
Monday, May 20, 2013
Wells Fargo, Citigroup Halt Foreclosure Sales
Wells Fargo and Citigroup have temporarily halted foreclosure sales in several states, taking precautions after a federal regulator released new guidance on minimum standards for foreclosure sales.
The Office of the Comptroller of the Currency (OCC) recently released the new standards. The OCC’s directive mostly consists of 13 questions banks need to ask themselves before selling a home in foreclosure, such as whether the borrower is protected from foreclosure by bankruptcy or if the borrower is in an active loan modification plan.
JPMorgan had also mostly stopped its foreclosure sales after the OCC’s standards were released, but has since resumed sales.
Wells Fargo, the nation’s largest mortgage originator, has seen a dramatic drop in foreclosure sales while significantly decreasing the number of sales it’s processing. For example, foreclosure sales by Wells Fargo in California, Nevada, Arizona, Oregon, and Washington plummeted from 349 a day in April to less than 10 a day, according to Foreclosure Radar, a real estate monitoring firm based in California.
"Wells Fargo has temporarily postponed certain foreclosure sales while we study the revised guidance from the OCC," a Wells Fargo spokeswoman confirmed for American Banker. Citibank officials also confirmed the reason behind their halt in sales was to carefully review the new guidance.
"The OCC did not direct a slowdown or pausing," says OCC spokesman Bryan Hubbard. "However, if servicers are not certain they are meeting these standards, pausing foreclosures is a responsible and productive step."
Source: “Wells, Citi Halt Most Foreclosure Sales as OCC Ratchets Up Scrutiny,” American Banker (May 17, 2013)
The Office of the Comptroller of the Currency (OCC) recently released the new standards. The OCC’s directive mostly consists of 13 questions banks need to ask themselves before selling a home in foreclosure, such as whether the borrower is protected from foreclosure by bankruptcy or if the borrower is in an active loan modification plan.
JPMorgan had also mostly stopped its foreclosure sales after the OCC’s standards were released, but has since resumed sales.
Wells Fargo, the nation’s largest mortgage originator, has seen a dramatic drop in foreclosure sales while significantly decreasing the number of sales it’s processing. For example, foreclosure sales by Wells Fargo in California, Nevada, Arizona, Oregon, and Washington plummeted from 349 a day in April to less than 10 a day, according to Foreclosure Radar, a real estate monitoring firm based in California.
"Wells Fargo has temporarily postponed certain foreclosure sales while we study the revised guidance from the OCC," a Wells Fargo spokeswoman confirmed for American Banker. Citibank officials also confirmed the reason behind their halt in sales was to carefully review the new guidance.
"The OCC did not direct a slowdown or pausing," says OCC spokesman Bryan Hubbard. "However, if servicers are not certain they are meeting these standards, pausing foreclosures is a responsible and productive step."
Source: “Wells, Citi Halt Most Foreclosure Sales as OCC Ratchets Up Scrutiny,” American Banker (May 17, 2013)
Thursday, May 16, 2013
No. of housing starts counters drop in foreclosures
A RealtyTrac housing market analysis compared building permit data released by the U.S. Department of Housing (HUD) for the first quarter to foreclosure starts for the same time period. RealtyTrac looked at the national, state and city level.
“Nationwide and in most markets, it appears builders are planning to ramp up activity that will help offset a drop in foreclosure starts, but there are some markets where a jump in both building permits and foreclosure starts in the first quarter indicate the scales will tip more heavily in favor of supply of homes for sale in the coming months – both new homes and foreclosures,” says Daren Blomquist, vice president at RealtyTrac.
“On the other extreme there are some markets where both building permits and foreclosure starts are down dramatically, indicating that there will be no reprieve from the shortage of homes for sale in those markets in the near future.”
First quarter findings
• Nationwide, single-family building permits increased 27 percent from a year ago – the highest first-quarter total since 2008. Meanwhile, U.S. foreclosure starts decreased the same amount, 27 percent, to the lowest quarterly level since the second quarter of 2006.
• The majority of building permits in the first quarter were for single-family homes (64 percent of total permits), followed by 5+ unit multi-family properties (33 percent). Overall, multi-family building permits increased 23 percent from a year ago.
• States with the most single family building permits in the first quarter were Texas, Florida, North Carolina, California and Georgia, all of which posted double-digit percentage increases from a year ago.
• All these top states also posted decreasing foreclosure starts from a year ago, although Florida foreclosure starts were down just 1 percent.
• States where both single family building permits and foreclosure starts increased from a year ago included Nevada, Washington, New Jersey, Maryland and New York.
• Cities with the most single family building permits in the first quarter were Houston, Oklahoma City, Austin, El Paso and Fort Worth. Of these top five, all except for Austin posted decreasing foreclosure starts during the same time period. Austin foreclosure starts increased 19 percent.
• Cities with the most foreclosure starts in the first quarter were Miami, Las Vegas, Chicago, Fort Lauderdale and Orlando, with Las Vegas, Fort Lauderdale and Orlando posting increases in foreclosure starts from a year ago. All five cities posted increases in single-family building permits from a year ago.
• Cities where both single family building permits and foreclosure starts increased at least 10 percent from a year ago in the first quarter included Las Vegas, Seattle, Raleigh, N.C., Reno, Nevada, and Boca Raton.
• Cities where both single family building permits and foreclosure starts decreased from a year ago in the first quarter included San Antonio, Albuquerque, Fresno, Bakersfield (both in California) and Greensboro, N.C.
• RealtyTrac posted a chart of 19 U.S. cities with “the most for-sale inventory coming.” In Florida, Delray Beach ranked No. 1, with Boca Raton at No. 16 and Ocoee at No. 19.
Source: Florida Realtors®
“Nationwide and in most markets, it appears builders are planning to ramp up activity that will help offset a drop in foreclosure starts, but there are some markets where a jump in both building permits and foreclosure starts in the first quarter indicate the scales will tip more heavily in favor of supply of homes for sale in the coming months – both new homes and foreclosures,” says Daren Blomquist, vice president at RealtyTrac.
“On the other extreme there are some markets where both building permits and foreclosure starts are down dramatically, indicating that there will be no reprieve from the shortage of homes for sale in those markets in the near future.”
First quarter findings
• Nationwide, single-family building permits increased 27 percent from a year ago – the highest first-quarter total since 2008. Meanwhile, U.S. foreclosure starts decreased the same amount, 27 percent, to the lowest quarterly level since the second quarter of 2006.
• The majority of building permits in the first quarter were for single-family homes (64 percent of total permits), followed by 5+ unit multi-family properties (33 percent). Overall, multi-family building permits increased 23 percent from a year ago.
• States with the most single family building permits in the first quarter were Texas, Florida, North Carolina, California and Georgia, all of which posted double-digit percentage increases from a year ago.
• All these top states also posted decreasing foreclosure starts from a year ago, although Florida foreclosure starts were down just 1 percent.
• States where both single family building permits and foreclosure starts increased from a year ago included Nevada, Washington, New Jersey, Maryland and New York.
• Cities with the most single family building permits in the first quarter were Houston, Oklahoma City, Austin, El Paso and Fort Worth. Of these top five, all except for Austin posted decreasing foreclosure starts during the same time period. Austin foreclosure starts increased 19 percent.
• Cities with the most foreclosure starts in the first quarter were Miami, Las Vegas, Chicago, Fort Lauderdale and Orlando, with Las Vegas, Fort Lauderdale and Orlando posting increases in foreclosure starts from a year ago. All five cities posted increases in single-family building permits from a year ago.
• Cities where both single family building permits and foreclosure starts increased at least 10 percent from a year ago in the first quarter included Las Vegas, Seattle, Raleigh, N.C., Reno, Nevada, and Boca Raton.
• Cities where both single family building permits and foreclosure starts decreased from a year ago in the first quarter included San Antonio, Albuquerque, Fresno, Bakersfield (both in California) and Greensboro, N.C.
• RealtyTrac posted a chart of 19 U.S. cities with “the most for-sale inventory coming.” In Florida, Delray Beach ranked No. 1, with Boca Raton at No. 16 and Ocoee at No. 19.
Source: Florida Realtors®
Friday, May 10, 2013
Fla. court OKs using non-judges on foreclosures
With tens of thousands of foreclosure cases clogged in the state’s courts, the Florida Supreme Court is signing off on a plan to use lawyers – and not judges – to handle them.
The court on Thursday issued an order that will allow chief judges across the state to use “general magistrates” to process foreclosure cases. The order, which was approved by all seven justices, called the move a “vehicle to provide additional judicial resources to efficiently process those cases.”
But it was quickly criticized by lawyers who represent homeowners battling foreclosures.
Matt Weidner, a St. Petersburg attorney, called it an “attack on consumers.” He said people dealing with the possible loss of their homes deserve to have their cases heard by judges who are responsible to voters.
“Florida consumers need more judges and a properly funded court system, not band aids, stop gap measures and magistrates,” Weidner said in an email.
Florida – which has had one of the nation’s highest foreclosure rates since the start of the Great Recession – has strained to deal with the number of foreclosures filed across the state. A recent report by a workgroup put together by the state court system estimated that nearly 400,000 cases are now pending in the state and 700,000 more could arise over the next three years.
The state has turned to senior judges to help with the workload, but a recent change to state retirement laws means that a judge must wait a year after retirement before returning to the courthouse. That led a group of judges and administrators to petition the Supreme Court in April to take the emergency step of authorizing the use of non-judges.
The Florida Legislature recently passed a bill (SB 1852) that authorized spending nearly $31 million to help pay for ways to reduce the backlog of foreclosure cases.
State Courts Administrator Lisa Goodner noted that one judicial circuit based in Gainesville is already using magistrates to process foreclosure cases. She also pointed out that final orders issued by magistrates must still be reviewed by a judge before becoming final.
But a key part of the state Supreme Court order is that homeowners could have their case automatically assigned to a non-judge unless they object within 10 days.
The Supreme Court ruling also states that lawyers who are appointed to handle foreclosure cases cannot practice the “same case type” of law in the county where they work as a magistrate.
“The fact that they expressly forbid attorneys that practice in the complex area of foreclosure law shows a total lack of regard for the complexities of foreclosures and further disrespects the rights of consumers,” Weidner said.
The court’s order comes right after the Florida Legislature approved a bill dealing with foreclosures. The measure would make banks prove in more detail that they own a mortgage or explain why they can’t prove ownership. But it also creates a process for others besides mortgage-holders to ask the court to speed up foreclosure cases.
Supporters contend the bill (HB 87) would rejuvenate the housing market, but Sen. Darren Soto is already calling on Gov. Rick Scott to veto the legislation. Soto, D-Orlando and an attorney, sent a letter to the governor calling the bill a “green light to target homeowners already under siege.”
Soto, however, is not as skeptical of the court’s decision as Weidner. He said too many homeowners currently get only a few minutes with a judge before their case is decided.
“If it gets a more meaningful review it could be a good thing,” Soto said.
Source: The Associated Press, Gary Fineout.
The court on Thursday issued an order that will allow chief judges across the state to use “general magistrates” to process foreclosure cases. The order, which was approved by all seven justices, called the move a “vehicle to provide additional judicial resources to efficiently process those cases.”
But it was quickly criticized by lawyers who represent homeowners battling foreclosures.
Matt Weidner, a St. Petersburg attorney, called it an “attack on consumers.” He said people dealing with the possible loss of their homes deserve to have their cases heard by judges who are responsible to voters.
“Florida consumers need more judges and a properly funded court system, not band aids, stop gap measures and magistrates,” Weidner said in an email.
Florida – which has had one of the nation’s highest foreclosure rates since the start of the Great Recession – has strained to deal with the number of foreclosures filed across the state. A recent report by a workgroup put together by the state court system estimated that nearly 400,000 cases are now pending in the state and 700,000 more could arise over the next three years.
The state has turned to senior judges to help with the workload, but a recent change to state retirement laws means that a judge must wait a year after retirement before returning to the courthouse. That led a group of judges and administrators to petition the Supreme Court in April to take the emergency step of authorizing the use of non-judges.
The Florida Legislature recently passed a bill (SB 1852) that authorized spending nearly $31 million to help pay for ways to reduce the backlog of foreclosure cases.
State Courts Administrator Lisa Goodner noted that one judicial circuit based in Gainesville is already using magistrates to process foreclosure cases. She also pointed out that final orders issued by magistrates must still be reviewed by a judge before becoming final.
But a key part of the state Supreme Court order is that homeowners could have their case automatically assigned to a non-judge unless they object within 10 days.
The Supreme Court ruling also states that lawyers who are appointed to handle foreclosure cases cannot practice the “same case type” of law in the county where they work as a magistrate.
“The fact that they expressly forbid attorneys that practice in the complex area of foreclosure law shows a total lack of regard for the complexities of foreclosures and further disrespects the rights of consumers,” Weidner said.
The court’s order comes right after the Florida Legislature approved a bill dealing with foreclosures. The measure would make banks prove in more detail that they own a mortgage or explain why they can’t prove ownership. But it also creates a process for others besides mortgage-holders to ask the court to speed up foreclosure cases.
Supporters contend the bill (HB 87) would rejuvenate the housing market, but Sen. Darren Soto is already calling on Gov. Rick Scott to veto the legislation. Soto, D-Orlando and an attorney, sent a letter to the governor calling the bill a “green light to target homeowners already under siege.”
Soto, however, is not as skeptical of the court’s decision as Weidner. He said too many homeowners currently get only a few minutes with a judge before their case is decided.
“If it gets a more meaningful review it could be a good thing,” Soto said.
Source: The Associated Press, Gary Fineout.
Foreclosure Activity Drops to 6-Year Low
Foreclosure filings dropped 5 percent in April from March, with foreclosure filings down 23 percent in April from year ago levels, RealtyTrac reports. Nationwide foreclosure activity has reached a 74-month low or the lowest point since February 2007.
"The April numbers indicate that the pig is moving through the python when it comes to deferred foreclosures in judicial foreclosure states," said Daren Blomquist, vice president at RealtyTrac. "Foreclosure starts have been increasing for several months in many of the judicial states, and now that increased volume is showing up in the second stage of the process: the public foreclosure auction."
Judicial foreclosure auctions rose 22 percent from March to April and were up 31 percent from year-ago levels, RealtyTrac reports. On the other hand, scheduled, non-judicial foreclosure auctions dropped 7 percent in March and are down 43 percent from last year.
Foreclosure starts are rising in several non-judicial states, Blomquist notes. While foreclosure starts have fallen nationwide, 22 states are still seeing a rise in foreclosures over the previous month, RealtyTrac reports. Some of those states include: New Jersey (138 percent increase), Connecticut (46 percent increase), Texas (37 percent increase), Georgia (35 percent increase), Oregon (16 percent increase), and California (13 percent increase).
Source: RealtyTrac and “RealtyTrac: April foreclosure filings drop 23%,” HousingWire (May 9, 2013)
"The April numbers indicate that the pig is moving through the python when it comes to deferred foreclosures in judicial foreclosure states," said Daren Blomquist, vice president at RealtyTrac. "Foreclosure starts have been increasing for several months in many of the judicial states, and now that increased volume is showing up in the second stage of the process: the public foreclosure auction."
Judicial foreclosure auctions rose 22 percent from March to April and were up 31 percent from year-ago levels, RealtyTrac reports. On the other hand, scheduled, non-judicial foreclosure auctions dropped 7 percent in March and are down 43 percent from last year.
Foreclosure starts are rising in several non-judicial states, Blomquist notes. While foreclosure starts have fallen nationwide, 22 states are still seeing a rise in foreclosures over the previous month, RealtyTrac reports. Some of those states include: New Jersey (138 percent increase), Connecticut (46 percent increase), Texas (37 percent increase), Georgia (35 percent increase), Oregon (16 percent increase), and California (13 percent increase).
Source: RealtyTrac and “RealtyTrac: April foreclosure filings drop 23%,” HousingWire (May 9, 2013)
Thursday, May 9, 2013
Fla. foreclosures up as lenders speed up process
RealtyTrac released its U.S. Foreclosure Market Report for April 2013 today. It finds that foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 144,790 U.S. properties in April, a decrease of 5 percent from the previous month and down 23 percent from April 2012.
Total foreclosure activity hit a 74-month low in April – at its lowest level since February 2007.
Foreclosure activity represents all homes in the foreclosure process, including those that received a first notice. The drop suggests stability.
On the other side of the coin, judicial foreclosure auctions represent homes leaving the foreclosure process in states such as Florida where they go through the court system. Nationally, judicial foreclosure auctions increased 22 percent and 31 percent year-to-year, suggesting a new push to move foreclosure inventory.
Scheduled foreclosure auctions increased from a year ago in 15 of the nation’s 26 judicial or quasi-judicial foreclosure states, including Florida, where they rose 55 percent.
Other judicial states saw an even bigger boost, including Maryland (199 percent increase), New Jersey (91 percent increase), Ohio (73 percent increase) and Oklahoma (57 percent increase).
On a RealtyTrac city analysis, Florida had five cities in the top 10 for foreclosure rates, including No. 2 Ocala (one in every 255 housing units had at least one foreclosure filing), No. 3 Miami (one in every 269 units), No. 4 Orlando (one in every 287 units), No. 7 Jacksonville (one in every 345 units) and No. 9 Tampa at No. 9 (one in every 384 units).
Nationally, one in every 905 U.S. housing units had a foreclosure filing during April.
“The April numbers indicate that the pig is moving through the python when it comes to deferred foreclosures in judicial foreclosure states,” says Daren Blomquist, vice president at RealtyTrac.
“Foreclosure starts have been increasing for several months in many of the judicial states, and now that increased volume is showing up in the second stage of the process: the public foreclosure auction,” he adds. “Scheduled foreclosure auctions in judicial states jumped to a 30-month high in April, evidence that lenders are serious about moving forward with completing the foreclosure process – either through repossession or sale to a third party investor at public auction.
Other report findings
• Scheduled non-judicial foreclosure auctions in states where foreclosures don’t need to go through the court system were down 7 percent in April from March and 43 percent year-to-year. These auctions were at an 88-month low – since April December 2005.
• A total of 70,133 U.S. properties started the foreclosure process in April, down 4 percent from the previous month and down 28 percent from a year ago.
• Lenders repossessed 34,997 U.S. properties in April, down 20 percent from March and down 32 percent from April 2012 to the lowest level since July 2007 – a 69-month low.
• Lender repossessions (REO) decreased from a year ago in 37 states and the District of Columbia.
• Non-Florida cities in the top 10 for foreclosure rates include No. 1 Akron, Ohio, with a 147 percent annual increase; Columbus, Ohio; Las Vegas, Myrtle Beach, S.C., and Chicago.
• At the beginning of May, A total of 11.3 million mortgages nationwide were seriously underwater, meaning combined amount of mortgages secured by the home was at least 25 percent more than the estimated value of the home. That represented 26 percent of all outstanding mortgages, but it’s down nearly 1.5 million from the 12.8 million seriously underwater mortgages in May 2012.
Source: Florida Realtors®
Total foreclosure activity hit a 74-month low in April – at its lowest level since February 2007.
Foreclosure activity represents all homes in the foreclosure process, including those that received a first notice. The drop suggests stability.
On the other side of the coin, judicial foreclosure auctions represent homes leaving the foreclosure process in states such as Florida where they go through the court system. Nationally, judicial foreclosure auctions increased 22 percent and 31 percent year-to-year, suggesting a new push to move foreclosure inventory.
Scheduled foreclosure auctions increased from a year ago in 15 of the nation’s 26 judicial or quasi-judicial foreclosure states, including Florida, where they rose 55 percent.
Other judicial states saw an even bigger boost, including Maryland (199 percent increase), New Jersey (91 percent increase), Ohio (73 percent increase) and Oklahoma (57 percent increase).
On a RealtyTrac city analysis, Florida had five cities in the top 10 for foreclosure rates, including No. 2 Ocala (one in every 255 housing units had at least one foreclosure filing), No. 3 Miami (one in every 269 units), No. 4 Orlando (one in every 287 units), No. 7 Jacksonville (one in every 345 units) and No. 9 Tampa at No. 9 (one in every 384 units).
Nationally, one in every 905 U.S. housing units had a foreclosure filing during April.
“The April numbers indicate that the pig is moving through the python when it comes to deferred foreclosures in judicial foreclosure states,” says Daren Blomquist, vice president at RealtyTrac.
“Foreclosure starts have been increasing for several months in many of the judicial states, and now that increased volume is showing up in the second stage of the process: the public foreclosure auction,” he adds. “Scheduled foreclosure auctions in judicial states jumped to a 30-month high in April, evidence that lenders are serious about moving forward with completing the foreclosure process – either through repossession or sale to a third party investor at public auction.
Other report findings
• Scheduled non-judicial foreclosure auctions in states where foreclosures don’t need to go through the court system were down 7 percent in April from March and 43 percent year-to-year. These auctions were at an 88-month low – since April December 2005.
• A total of 70,133 U.S. properties started the foreclosure process in April, down 4 percent from the previous month and down 28 percent from a year ago.
• Lenders repossessed 34,997 U.S. properties in April, down 20 percent from March and down 32 percent from April 2012 to the lowest level since July 2007 – a 69-month low.
• Lender repossessions (REO) decreased from a year ago in 37 states and the District of Columbia.
• Non-Florida cities in the top 10 for foreclosure rates include No. 1 Akron, Ohio, with a 147 percent annual increase; Columbus, Ohio; Las Vegas, Myrtle Beach, S.C., and Chicago.
• At the beginning of May, A total of 11.3 million mortgages nationwide were seriously underwater, meaning combined amount of mortgages secured by the home was at least 25 percent more than the estimated value of the home. That represented 26 percent of all outstanding mortgages, but it’s down nearly 1.5 million from the 12.8 million seriously underwater mortgages in May 2012.
Source: Florida Realtors®
5 States With the Highest Foreclosure Inventories
Foreclosures rates are falling, but some states are still battling high levels. According to nationwide averages, the foreclosure inventory as of March represented 2.8 percent of all homes with a mortgage — that’s down from 3.5 percent in February.
In CoreLogic’s latest report reflecting March data, the following five states posted the highest foreclosure inventories (as a percentage of all mortgaged homes):
In CoreLogic’s latest report reflecting March data, the following five states posted the highest foreclosure inventories (as a percentage of all mortgaged homes):
- Florida: 9.7 percent
- New Jersey: 7.3 percent
- New York: 5 percent
- Maine: 4.4 percent
- Illinois: 4.4 percent
- Wyoming: 0.5 percent
- Alaska: 0.7 percent
- North Dakota: 0.7 percent
- Nebraska: 0.9 percent
- Montana: 0.9 percent
Subscribe to:
Posts (Atom)