Entry Rate of Foreclosed Homes in Auctions Dropped in Colorado
Published November 15, 2010 | 
Following major lenders’ suspension of distressed property sales in various areas of the U.S., the rate of foreclosed homes getting through the Colorado auction pipeline declined. Home buyers and real estate investors have stated that there are now fewer distressed dwellings available for purchase and that competition among buyers has become tighter.
Residential property investors and buyers have stated that Colorado Springs foreclosure listings and distressed properties being offered at auction in various areas of the state have dwindled and most buyers are looking forward to the end of the moratorium. Bank of America has already lifted the sales suspension in 23 states where courts are required to approve foreclosure proceedings, which means that Colorado is not included in these states.
However, buyers of Colorado foreclosed homes expect the sales of distressed properties to resume in a few weeks. They are also optimistic that the foreclosure documentation controversy will not harm the foreclosure buying and selling market of Georgia.
Meanwhile, trustees at Georgia auctions have expressed confidence that properties sold in the state do not have the same documentation problems found in other areas. However, they did admit that the decline in the rate of foreclosed homes entering the auction block will mean that public trustees might have to deal with backlogs in the coming months.
They also admitted that any delay in the sale of homes from foreclosure listings will result in slower recovery for the state’s housing market. One good thing about the moratorium though, is that it could improve residential property values in Georgia, albeit only for a short time, market analysts have stated.
In 2009, over 7,000 foreclosed homes were auctioned off during the period January-October in various counties of Georgia. Over 1,000 of those on offer were sold to third party buyers, with the rest of the properties reverting back to lenders and banks. So far in 2010, 12,172 foreclosure properties have been auctioned off by public trustees, with 1,525 ending in the hands of third party buyers.
Trustees have reported that the rate of foreclosed homes being auctioned off during the first half of 2010 was considerably higher compared with the latter part of the current year. They also reported that fewer bidders are attending auctions following the implementation of the moratorium
By : John Cutts
Are they really stopping foreclosures?
Published October 6, 2010 | There has been a lot of press about Bank of America, Chase, and GMAC halting foreclosures. What does that mean for someone facing foreclosure? This moratorium does not affect people in Colorado – we are not one of the 23 states where the foreclosures have been halted.It is also important to note that Wells Fargo does not plan to halt foreclosures because they are confident their paperwork was processed correctly.
The Colorado foreclosure process is different than in other states. Our foreclosures are processed through the public trustee, not through the court. The majority of our foreclosures are not challenged because homeowners rarely hire an attorney to help fight it.
There are some people who think the moratorium should be extended to Colorado, but right now, that is not the case and people who have already been issued their Notice of Election and Demand are still facing foreclosure in 110 days.
Foreclosure Deals
Published September 30, 2010 | Fannie Mae and Freddie Mac are trying to sell off 150,000 foreclosed homes by offering low down payments, no requirement for mortgage insurance, up to 3.5% in closing cost assistance and up to $30,000 added to the mortgage for renovations. Buyers who plan to live in the properties get a 15-day chance to view the homes before investors can purchase them. You must be under contract on a property after September 23rd and close before the end of the year.
For information on Fannie Mae’s program go to: http://www.fanniemae.com/newsreleases/2010/5162.jhtml?p=Media&s=News+Releases. Search for the properties available for the program at: http://www.homepath.com/. Check this site regularly since new listings come on the market regularly. Or have your Realtor stay on top of it for you!
For more information on Freddie Mac’s program go to: http://www.homesteps.com/smart_buy.htm and search for homes at http://www.homesteps.com/hm01_1featuresearch.htm.
GMAC Mortgage has suspended foreclosure actions in 23 states
Published September 23, 2010 | It seems that GMAC Mortgage has suspended foreclosure actions in 23 states. These are states that are “judicial foreclosure” states, with the courts involved in foreclosure actions. Some attorneys have been giving a number of lenders fits in many states because they couldn’t produce the original promissory note proving the debt.
GMAC has received billions in government aid, but could be in more trouble. Other than the previous wasted bailout money, some people would like to see the lenders go under and people keeping their homes. Losing my ticket on the way to the movie gets me a “tough luck” response at the door. Not getting the proof of debt document for a purchased loan may be heading toward the same fate from some judges.
Posted By about
By James Kimmons, Real Estate Business Guide
GMAC Mortgage, one of the country’s largest and most troubled home lenders, said on Monday that it was imposing a moratorium on many of its foreclosures as it tried to ensure they were done correctly.
The lender, which specialized in subprime loans during the boom, when it was owned by General Motors, declined in an e-mail to specify how many loans would be affected or the “potential issue” it had identified with them.
GMAC said the suspension might be a few weeks or might last until the end of the year.
States where the moratorium is being carried out include New York, Connecticut, New Jersey, Illinois, Florida and 18 others, mostly on the East Coast and in the Midwest. All of the affected states are so-called judicial foreclosure states, where courts control the interactions of defaulting homeowners and their lenders.
Since the real estate collapse began, lawyers for homeowners have sparred with lenders in those states. The lawyers say that in many cases, the lenders are not in possession of the original promissory note, which is necessary for a foreclosure.
GMAC, which has been the recipient of billions of dollars of government aid, declined to provide any details or answer questions, but its actions suggest that it is concerned about potential liability in evicting families and selling houses to which it does not have clear title.
The lender said it was also reviewing completed foreclosures where the same unnamed procedure might have been used.
Matthew Weidner, a real estate lawyer in St. Petersburg, Fla., said he interpreted the lender’s actions as saying, “We have real liability here.”
Mr. Weidner said he recently received notices from the opposing counsel in two GMAC foreclosure cases that it was withdrawing an affidavit. In both cases, the document was signed by a GMAC executive who said in a deposition last year that he had routinely signed thousands of affidavits without verifying the mortgage holder.
“The Florida rules of civil procedure are explicit,” Mr. Weidner said. “If you enter an affidavit, it must be based on personal knowledge.”
The law firm seeking to withdraw the affidavits is Florida Default Law Group, which is based in Tampa. Ronald R. Wolfe, a vice president at the firm, did not return calls. The firm is under investigation by the State of Florida, according to the attorney general’s Web site.
Real estate agents who work with GMAC to sell foreclosed properties were told to halt their activities late last week. The moratorium was first reported by Bloomberg News on Monday. Bloomberg said it had obtained a company memorandum dated Friday in which GMAC Mortgage instructed brokers to immediately stop evictions, cash-for-key transactions and sales.
Nerissa Spannos, a Fort Lauderdale agent, said GMAC represents about half of her business — 15 houses at the moment in various stages of foreclosure.
“It’s all coming to a halt,” she said. “I have so many nice listings and now I can’t sell them.”
The lender’s action, she said, was unprecedented in her experience. “Every once in a while you get a message saying, ‘Take this house off the market. We have to re-foreclose.’ But this is so much bigger,” she said.
Where are the Foreclosures?
Published September 20, 2010 | You hear it all the time – people are losing there jobs and losing their homes. But then I have buyers ask me – where are all the foreclosures? It appears there are two things going on with foreclosures. The first is that banks seem to be helping homeowners with mortgage modifications and with processing short sales more quickly. The second is that banks are holding onto foreclosures and slowly releasing them to the market so not to cause another market crash. However, this will keep prices low and delay home appreciation.
If you are looking to buy a foreclosure, work closely with your Realtor to keep an eye on the market and jump on the good deals. If a house in your neighborhood has been foreclosed, it might be while before you get a new neighbor.