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Posts Tagged ‘mortgage lending’
More Strange Short Sale Stories
Nobody ever said that short sales were going to be easy. But there is now a story making the rounds about a bank that has denied a short sale due to “lack of marketing.” Apparently the bank was unhappy because they couldn’t find the listing on Zillow.com. If the banks are going to go down this path, it spells real trouble for both agents and sellers.
Short sales are an odd type of sale. When an agent lists a short sale, the listing agreement is signed between the agent and the seller. The bank is not involved at this stage. That means that the agent’s fiduciary duty is to Read the rest of this entry »
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Chinese Drywall Strikes Again!
Do you remember the stories about Chinese drywall? They started to crop up a couple of years ago. Some drywall made in China wasn’t exactly made to US standards. According to Wikipedia,
Laboratory tests of samples for volatile chemicals have identified emissions of the sulfurous gases carbon disulfide, carbonyl sulfide, and hydrogen sulfide. These emissions, which have the odor of rotten eggs, worsen as temperature and humidity rise and cause copper surfaces to turn black and powdery, a chemical process indicative of reaction with hydrogen sulfide. Copper pipes, wiring, and air conditioner coils are affected, as well as silver jewelry. Homeowners have reported a variety of symptoms, including respiratory problems such as asthma attacks, chronic coughing and difficulty breathing, as well as chronic headaches and sinus issues.
As if all of this isn’t bad enough, now there is another reason to get rid of any Chinese drywall that may be lurking in Read the rest of this entry »
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Homeowners Can File Individual Suits Over Denied Loan Modifications According to 7th Circuit Court of Appeals
Virtually every real estate agent has heard this story. A homeowner applies with their lender for a loan modification under the federal HAMP program. The lender puts them on a trial modification for a few months. Then the lender sends them a letter stating that they don’t actually qualify for the modification and that they owe the bank back payments, penalties, interest, etc…
Never mind the fact that the homeowner actually made all of their payments on time during their “trial modification period”. And never mind the fact that the lender never tells the consumer why they don’t qualify. They are just turned down. End of story.
Well, not so fast.
Most law suits involving HAMP loan modification Read the rest of this entry »
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There May Be a Sea Change In Foreclosure Law Coming
It is really amazing that nobody in the mainstream media seems to be following this story, but between now and April 15th, there may be a seismic shift in foreclosure law that will impact the entire country. In February of 2011, a federal bankruptcy judge in New York ruled that MERS – the system used by banks and investors to assign rights associated with mortgages – business practices are completely illegal. If the ruling is upheld – and a decision is due soon – banks and investors will be facing a nightmare scenario in which their investments in mortgage backed securities could be worthless, and a good number of lenders will likely line up at the federal tough for another bail out. But the only press the story is getting seems to be due to an article run in the Huffington Post more than one year ago.
In that HuffPo article, the author gave a brief but very good explanation of MERS business model and why it is illegal. I’m not going to rehash that here. If you want the details – and I do advise that you get them – go ahead and read the original piece.
The judge hearing the case – US Bankruptcy Judge Read the rest of this entry »
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Foreclosures Likely to Rise as Direct Result of State Settlement with Banks
It is no small irony that this past week’s announcement of a settlement between the nation’s five largest lenders and 49 states is actually expected to cause a spike in foreclosure activity. The settlement negotiations directly involved the procedures that banks use when foreclosing. But now that those talks are done, and an agreement has been reached, these same banks now feel that they are on firm legal footing to proceed with many foreclosures that they had held off on. The end result is likely to be a big increase in the number of foreclosures in California in the coming few months.
The banks involved in the negotiations had been reluctant to foreclose on properties because any increase in foreclosure activity was likely to bring added Read the rest of this entry »
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