Real Estate Information Archive

The most recent Home Affordable Modification Program (HAMP) report released by the U.S. Treasury shows “extremely low conversion rates” from trial to permanent modifications, with success just a 50/50 gamble, according to commentary from Moody’s Investors Service.

As of the end of April, servicers participating in HAMP had converted almost 300,000 permanent modifications. However, they had also canceled 277,640 trial modifications. Moody’s says this represents approximately a 50 percent success rate. The report also shows 3,744 permanent modifications have been canceled.

According to Moody’s, the biggest culprits keeping conversions low are insufficient paperwork and negative equity.

“We believe the low conversion rate is a combination of two issues: borrowers failed to provide the documents they promised, and the rate reduction and principal forbearance used under HAMP were not enough to motivate severely underwater borrowers to start paying again,” Moody’s analysts wrote in their report.

The ratings agency says it expects recently announced program changes to produce higher conversion rates by allowing principal forgiveness. However this piece of the new HAMP directives are not expected to be ready for implementation before fall.

Moody’s notes that the lion’s share of HAMP modifications, 56 percent, has been on GSE-held loans, as expected. However, more than a third, 35 percent, occurred in the non-GSE or “private-label” sector.

“If servicers can increase modifications in the private-label sector and extend principal forgiveness under HAMP 2.0, default rates for mortgage loans backing private-label securities can be reduced significantly,” the analysts at Moody’s said.

“So far we assume that modifications will lower losses on pools backing private-label securities by approximately 5 percent,” they wrote in the report.

“The Primeaux Team brings over 7 years of experience to the local real estate market of Houston, Spring, Tomball, The Woodlands, Magnolia, Montgomery, Lake Conroe, Conroe, Humble, Kingwood, Galveston, Bay Area, Missouri City, Katy, Cypress, and all the other small towns in between  that make up this great metropolitan area. The Primeaux Team has consistently out produced and outperformed other agencies for the past 7 years and will continue to aggressively market our client’s properties to ensure they receive the highest net price with the lowest DOM.  Whether you are looking for free foreclosure listings in any of these areas, first time buyer programs, short sale and foreclosure options as a seller, commercial real estate, REO Services, or Luxury Homes, our team of specialized and highly motivated agents will always bring you primo results. “

Texas claimed the biggest increase in foreclosures during the month of February with a rise of 35.3 percent, according to new data published this week by ForeclosureListings.com.

Posting the second largest increase on the company’s list was Michigan, where foreclosures jumped 17.54 percent during the month. California came in at No. 3, with a gain of 11.93 percent, followed by Florida, which saw an increase of just 4.71 percent.

ForeclosureListings.com reported that Georgia actually showed a decrease in foreclosure numbers of 5.55 percent, and Arkansas recorded the largest monthly drop of 28.6 percent.

The nation is struggling with a lack of jobs and continued pressure on home values. The report noted that several of the hardest-hit states – California, Florida, Arizona, Nevada, Michigan – are creating emergency funds to help the temporarily unemployed from being foreclosed upon, but said “the numbers continue to paint a bleak picture.”

Las Vegas continues to hold the title of the nation’s top foreclosure hotspot. There, 3,154 homes were foreclosed during the month of February, ForeclosureListings.com reported, up 29.42 percent from the month before.

While their overall numbers were lower than the Sin City, in Phoenix, Arizona, foreclosures jumped 34.61 percent last month, and in Houston, Texas, they surged 37.80 percent. San Antonio, Texas also saw a substantial increase of 30.82 percent, while foreclosures in Dallas, Texas rose 29.5 percent.

The numbers so far may seem daunting, but there were some signs of improvement. Little Rock, Arkansas showed a monthly drop of 35.34 percent from the previous month with only 75 foreclosures. Riverdale, Georgia posted a decrease of 25 percent with only 956 homes foreclosed.

Likewise, two large cities of note, Washington, D.C. reported 169 foreclosures – a difference of 19.9 percent less than January. And Atlanta, Georgia reported 1,039 foreclosures, a drop of 6.98 percent in the same time period.

Today one in every 418 homes in the United States has been hit with a foreclosure filing, topping over 300,000 filings for the 12th straight month and bringing the nationwide total to almost 1.4 million. According to ForeclosureListing.com’s estimates, a staggering 4 million homeowners are at risk of foreclosure.

Nevada, the state that just a few years ago couldn’t keep up with the demand for new home building is now the leader in foreclosures at four times the national average, with Arizona, California, and Florida close behind.

“The Primeaux Team brings over 7 years of experience to the local real estate market of Houston, Spring, Tomball, The Woodlands, Magnolia, Montgomery, Lake Conroe, Conroe, Humble, Kingwood, Galveston, Bay Area, Missouri City, Katy, Cypress, and all the other small towns in between  that make up this great metropolitan area. The Primeaux Team has consistently out produced and outperformed other agencies for the past 7 years and will continue to aggressively market our client’s properties to ensure they receive the highest net price with the lowest DOM.  Whether you are looking for free foreclosure listings in any of these areas, first time buyer programs, short sale and foreclosure options as a seller, commercial real estate, REO Services, or Luxury Homes, our team of specialized and highly motivated agents will always bring you primo results. “