New York Shadow Inventory
Shadow Inventory
The Wall Street Journal had a very interesting article written by Nick Timiraos (a link to the article is provided below) regarding shadow inventory. The article talks about interesting topics such as the decrease in the new homes being built and its effect on investor interest in REO (bank owned properties) properties. Freddie Mac analysts are citing the reduction in new home building as a reason why the once assumed over saturated “shadow inventory” is not smothering and hampering the housing recovery.
The Wall Street Journal – August 16, 2012
Foreclosure Defense Attorneys
If you are considering a foreclosed property as an investment and have questions, please call the Law Firm of Vaughn, Weber & Prakope, PLLC at 516-858-2620 to speak to an attorney.
Bank of America Reduces Mortgages by Forgiving a Portion of the Principal.
For those of you who have not heard the breaking news, Bank of America has begun to forgive a portion of the principal on certain people’s mortgages. The NYT is reporting that “Bank of America has started sending letters to thousands of homeowners in the United States, offering to forgive a portion of the principal balance on their mortgages by an average of $150,000 each.” In a press release announcing the new practice, Bank of America claims to have developed this program under the terms of a settlement involving five major banks, the Federal Government, and 49 state attorneys general. This may mean that other banks will begin taking similar actions in the near future, but that remains to be seen.
In some instances, the reduced principal could end up lowering mortgage payments by approximately 30%. By forgiving a portion of the principle and lowering monthly payments, Bank of America is able to turn mortgages that would otherwise default into long-term performing mortgages. At the same time, this will allow many individuals to remain in their homes. Bank of America will be contacting about 200,000 potential candidates.
If you have any questions about mortgages, feel free to contact The Law Firm of Vaughn and Weber at (516) 858-2620 to speak with a foreclosure attorney. We would be happy to speak with you about this or other mortgage issues.
The May 7, 2012 New York Times article by Natasha Singer can be accessed by clicking here.
Foreclosure Settlement Conferences
What you should know about Foreclosure Settlement Conferences!
Residential foreclosure defendants in New York are entitled to a preliminary foreclosure settlement conference that may enable a speedier and less expensive way of resolving their foreclosure issue than would otherwise be possible. The law requiring the conference – New York Civil Practice Law and Rules section 3408 – is beneficial for foreclosure defendants in a number of ways.
- First, foreclosure settlement conferences are typically less expensive than trial. Thus a foreclosure settlement conference requirement alone is beneficial. But section 3408 does not simply require a conference – it also requires that parties engage in good-faith negotiation for the purpose of “determining whether the parties can reach a mutually agreeable resolution to help the defendant avoid losing his or her home.” Further, the law requires that parties periodically update the court about the negotiation, allowing courts to evaluate whether negotiations are made in good faith. It is rare that legislation requires parties to make good-faith efforts to reach a resolution that is favorable to the defendant, and foreclosure defendants should take advantage of this requirement.
- Additionally, the law requires that the settlement conference occur within sixty days of the day proof of service is filed with the court, unless the parties agree to conference on another date. This allows foreclosure defendants to enter negotiations quickly, avoiding long periods of uncertainty that would certainly add stress to an already stressful situation.
- The law also requires parties to bring certain documents to the conference, gives the court an opportunity to require additional documents, and forbids either party from charging the other for legal expenses associated with the conference. Foreclosure defendants may be able to use the conference period to find out information about their case that may otherwise only be obtained through a potentially expensive discovery process.
Foreclosure Attorneys in Nassau County
Of course, foreclosure defendants may appear at the conference with counsel, which may help them take full advantage of the procedure. The Law Firm of Vaughn, Weber & Prakope, PLLC routinely represents clients through all phases of a foreclosure action. If you are facing a foreclosure, and would like to speak with an attorney about a settlement conference, or any other step in the foreclosure process, feel free to call (516) 858-2620 today.
*Contributions to the research and preparation of this blog were made by Jason Mays, J.D. (awaiting admission in NYS).
Bank of America to Reduce Mortgages
According to a recent AFP article:
Bank of America has reached a side agreement with US authorities that could reduce the mortgages of some 200,000 borrowers….Bank of America borrowers are expected to receive reductions averaging more than $100,000…
This is very interesting! We will be contacting BOA today!
Updated on 03/10/12
The Tennessean reports that:
Underwater homeowners are eligible if they have a loan serviced by Bank of America and were at least 60 days delinquent on their mortgages as of Jan. 31.
Only loans owned by Bank of America or private investors are eligible, and those include mortgages originated by Countrywide Financial Corp. The Calabasas, Calif.-based subprime lender was acquired by Bank of America in 2008.
Loans are not eligible if they are owned or backed by Fannie Mae, Freddie Mac, the Federal Housing Administration or the Department of Veterans Affairs, Simon said.
Bank of America estimated that 200,000 homeowners will be eligible, though it does not anticipate that all of them will take part in the program.
The bank will begin reaching out to homeowners next month. It has three years to complete the principal reductions, but the settlement offers incentives for them to be completed within a year of the settlement’s completion, so Simon anticipated the process would move “fairly quickly.”
Bank of America mortgage customers can call 877-488-7814 to see if they’re eligible and to get more information.
If you are currently in foreclosure or in danger of falling into foreclosure, please call (516) 858-2620 to speak with an Attorney!
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