Presented By:

Fed Reporting Fewer Loan Mods

News | 13th May 2012

Loan giant Freddie Mac is reporting that loan workouts and loan modifications have declined by nearly 50% compared to the same time period in 2011. Loan workouts have dropped to around 14,000 in the first quarter of 2012, compared to nearly 35,000 in the first quarter of 2011. Many experts are saying that this may be an indication that the number of distressed properties on the market may be due for a big decline. The decline is attributed to a drop of seriously delinquent loans by more than 10% compared to last year. Fewer foreclosures for sale would possibly help home values increase and entice more home sellers to put their homes up for sale. Foreclosure related sales account for around 25% of the total market in residential sales in 2011.

Freddie Mac also reported a big increase of the number of loans staying current after 2 years from completing a modification to over 60%. A lot of the change is due to the implementation of the Standard Modification on January 1st, which was made mandatory to lenders by the federal government. The over projections indicate that more banks will be using creative work-out options for delinquent homeowners such as loan modifications, forbearance and even mortgage principle write downs. A new federal agreement with banks in February mandated that banks set aside $17 Billion for non-foreclosure option aimed at keeping people in their homes.

Leave a Reply

Your email address will not be published. Required fields are marked *

Share & Print This Post
Choose A Topic Below

How much is your
Home worth?

Looking for a home? Talk to an Area Expert...
Follow Us

We’re celebrating Marti’s birthday and she’s modeling one of her gifts! Happy dance! ...

View on Facebook

NEW DEL MAR LISTING!
OPEN Saturday & Sunday 1-4PM
2131 El Amigo Road
Del Mar, CA 92014

$2,350,000
Beds: 3 + Office | Full Baths: 2.5
Ocean view contemporary with vaulted ceilings In Del Mar, close to the Beach and Village. This great home has large front and backyards with multiple view decks for relaxing and recreation, an entire upstairs ocean view master retreat featuring an office and separate bonus room with stone fireplace. The entry level is comprised of 2 additional bedrooms, a large family room with French doors and a quaint kitchen that opens up to the backyard. Enjoy this home as is or add on and remodel as you wish!
...

View on Facebook