How many foreclosures in a million? A lot.

One million is the number being bantered about of houses that may be lost in foreclosure actions this year.

Rosalyn Dalebout rents out space in her home to three tenants, has cut off her phone service and canceled her earthquake and life insurance — all to pay her mortgage every month.

So far, she's one of the lucky ones.

More than 1 million American households are likely to lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans.

Nearly 528,000 homes were taken over by lenders in the first six months of the year. If foreclosures continue at that rate, the yearly number would eclipse the more than 900,000 homes repossessed in 2009, RealtyTrac Inc., a foreclosure listing service, said Thursday.

Whatever the actual number, things do not look well for American homeowners or the banks who gave them the mortgage. Does government have a fix? Perhaps loosening up mortgage modifications for those who are current on their loans but whose homes are valued for less than the amount of mortgage would be a good first step.

What do you think?

The Associated Press story by Alex Viega can be found here - Homes lost to foreclosure on track for 1M in 2010

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Mortgage modification help on the way? Maybe in New York.

The New York Times reports that NYC and unions are pressing banks to modify mortgages.

Hoping to succeed where Washington has largely failed, New York City’s comptroller, John C. Liu, and six large unions plan to begin a campaign on Wednesday to press the biggest banks to do more to prevent foreclosures in the New York area.

We have complained before on these pages about lender reluctance to modify mortgages in spite of the borrower's good payment history.

Mr. Liu said the group would send Citigroup, JPMorgan Chase, Bank of America and Wells Fargo, among others, a letter that criticizes them for dragging their feet on modifying mortgages that are underwater or delinquent, and that urges them to do “everything possible” to avert foreclosures.

Just how will they pressure the banks? How about moving "pension funds" and other union money? That might work.

Don't expect anything to happen quickly. But this is a good first step.

Read the full article New York Presses Banks on Foreclosures

For your next title order
or if you have questions about what you see here,
contact Stephen M. Flatow
Vested Title Inc.
648 Newark Avenue, P.O. Box 6453,
Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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Home Buyer Tax Credit Deadline Extended

"The home buyer tax credit now has an extended closing deadline, thanks to Congress. The new deadline is set for September 30, 2010. This new legislation, bill H.R. 5623, will allow for thousands of home buyers to take advantage of the $8,000 and $6,500 tax credits that saw their previous deadline pass on June 30th.

"The National Association of Realtors (NAR) has been encouraging of its passage. “We know that up to 180,000 home buyers eligible for the tax credit are rejoicing this morning. And we all thank both houses of Congress for their work to ensure passage of both bills,” said NAR president Vicki Cox Golder.

"Who is eligible for this deadline extension? If you are a first time or "step up" homebuyer who had a ratified contract in place as of April 30, 2010, but was unable to close by the previous June 30th deadline, then you're in luck. You are considered a first time home buyer if you have not owned your own home in the last three years. The same income restrictions and rules apply for the extension as were in place for the previous June 30th deadline."

Read the full article- Realty Times - Home Buyer Tax Credit Deadline Extended

For your next title order

or if you have questions about what you see here,

contact Stephen M. Flatow

Vested Title Inc.

648 Newark Avenue, P.O. Box 6453,

Jersey City, NJ 07306

Tel 201-656-9220 - Fax 201-656-4506

E-mail: vti AT vested.com - www.vested.com

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A personal look at the housing collapse

Hollis R. Towns, executive editor of the Asbury Park Press, writes about a second home he has in the Atlanta, Georgia area. Things aren't going well with the home that he's trying to sell.

"I've always understood Main Street's frustration with the Obama administration and the bailout of Wall Street. The fat cats were made whole and the little guys were left trying to hold on. But you never really understand an issue until you are affected by it."

Mr. Towns found a buyer, the present tenants, but problems arose with the appraisal.

"It was for $90,000 — $44,000 less than the list price of $134,000 and $34,000 less than the payoff amount. This, for a 3,500-square-foot, six-bedroom Cape Cod with a finished, walk-out basement, screened porch and bonus room, all on nearly an acre of land in a drop-dead gorgeous, old neighborhood."

The culprit is the undeniable fact that the house was located in a neighborhood full of foreclosed homes. Prices on those homes are, by necessity, depressed. That impacts the value of homes where the owners have made every payment on time.

The lender was of no help--suggesting a "short sale" that would impact the owner's credit report and possibly have terribly adverse income tax consequences.

Read Mr. Towns' column.

[Note, I wrote to Mr. Towns in order to get more facts surrounding his original acquisition of the property; was it as his home or an investment property, and why he didn't sell the house when he moved. As of July 1, I have not received a response.]

For your next title order
or if you have questions about what you see here,
contact Stephen M. Flatow
Vested Title Inc.
648 Newark Avenue
P.O. Box 6453
Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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V.A. loans harder to get

With all the problems American military vets face, The New York Times' Bob Tedeschi writes about another one -- the difficulty in getting V.A. mortgages.

Tedeschi writes,

"MILITARY veterans have long been accustomed to a relatively easy mortgage process. Even borrowers with no down payment or a low credit score were usually granted V.A. loans, in large part because the Department of Veterans Affairs insures a quarter of the loan amount."

"But about two years ago, lenders began limiting the conditions under which they would offer these mortgages, and industry executives say that since the start of the year, all the nation’s major lenders have followed suit."

This is not a new issue. Loans are still offered with no down payment but some of the big lenders are backing away.

Credit scores seem to be playing a major role in the decision of lenders to make the insured loans.

Is this a way to treat men and women who have stood in the front lines for America?

Read the full article here.

For your next title order or
if you have questions about what you see here,
contact Stephen M. Flatow
Vested Title Inc.
648 Newark Avenue,
P.O. Box 6453,
Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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