Sunday, November 9th, 2008 at 8:12 AM
90-Day Foreclosure Freeze
Everyone is talking about freezing foreclosures for 90 days – Obama, Biden, Arnold, etc., and JPMorgan Chase has already done it.
This week our governor said:
“Nothing will stimulate our economy and bring it back quicker than creating a stable housing market and keeping people in their homes.”
Whatever. Just more government mumbo jumbo to make it look like they are doing something.
Is it working? This is from the latest HOPE NOW press release:
Washington, D.C. (October 27, 2008) – HOPE NOW, the private sector alliance of mortgage servicers, counselors, and investors that has been working aggressively to prevent foreclosures and keep homeowners in their homes, today announced that, due to the continuing efforts of HOPE NOW and the broader mortgage industry, nearly 2.5 million homeowners have avoided foreclosure and been able to stay in their homes since July 2007.
HOPE NOW also announced that the mortgage lending industry helped 212,000 homeowners avoid foreclosure in September. This is the first time since HOPE NOW began compiling data in July 2007 that the number of foreclosures prevented in one month exceeded 200,000. It is also 30,000 (15.6%) more than the previous record of 192,000 foreclosure preventions set in August 2008.
You can probably expect that these numbers include regular refinances, but let’s give them the benefit of the doubt. How many homeowners could they save during a 90-day blitz of loan modifications, maybe a million?
More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.
A 90-day freeze is unlikely to solve much, but there is one group who will benefit greatly – the folks at REO departments, especially at the bigger lenders. They could use some relief!
Of the 18 REO listings assigned to me, only seven are in the MLS. The rest are in some form of ‘pre-listing processing’, and five haven’t gotten any recent attention - they’re just sitting there vacant, waiting.
Don’t expect a 90-day foreclosure vacation to slow down the flow of REOs coming to market - it’ll help the us clear out some of the backlog!
Posted on Sunday, November 9th, 2008 at 8:12 AM in Foreclosures/REOs, Thinking of Buying? | 11 Comments » | 
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I mean this in an above board, honest, ethical way. Can a market develop for investors to get a heads up on pre-listings and vacant/TBD houses so that we can do due diligence and be prepared to act once they become available?
Rob Dawg | November 9th, 2008 at 8:42 amYes, all you need is the lockbox codes.
Lenders use the same code for all of their REOs for ease of access for appraisers, contractors, etc.
We’re told not publicize the codes, but many listing agents publish them in their MLS listings. Once you have ‘em, they work for all of that bank’s listings.
Jim the Realtor | November 9th, 2008 at 8:59 amThat picture is perfect. So funny!
Kwaping | November 9th, 2008 at 9:34 amMore on Rob’s thought:
I think we’re developing the market here. The default lists are available (in right-hand column), and once you find a property you’re interested in, you have to keep an eye on it.
Once it is vacated, the banks are quick to change the locks, and install their lockbox. It can still take 1-3 months after that before it reaches the MLS, but if you know the codes you can get a head start.
I still haven’t found a way to get a bank to entertain an offer prior to MLS input, but if you can move quick once it’s for sale, then you might get lucky and have your offer accepted before the competition arrives.
Jim the Realtor | November 9th, 2008 at 12:42 pmI have a suggestion. Let’s put a 90 day freeze on renter evictions. Yeah, that way I can just stop paying my rent like the rest of the deadbeats.
No_Such_Reality | November 9th, 2008 at 9:15 pmNo matter what kind of moritorium these jokers put on foreclosures, the market’s equilibrium point will eventually be found. They’ll only succeed in delaying it.
greenlander | November 9th, 2008 at 9:15 pmI think we’re developing the market here.
Jim,
Rob Dawg | November 10th, 2008 at 6:36 amMy thoughts exactly. Looks like an opportunity for a “team” of investor, realtor and mortgage funder to have a package “ready.” The golden words will be “we can close before the end of quarter.” I know because that’s how I got my primary residence in the last “housing never goes down” downturn. A sharp realtor with inside track could even talk the bank into pushing a property into MLS early because he has a client ready to go.
“No matter what kind of moratorium these jokers put on foreclosures, the market’s equilibrium point will eventually be found. They’ll only succeed in delaying it.”
The problem is the people that aren’t paying they’re mortgage are likely putting $$$ away so when they’re finally evicted they have some savings.
If government would just stop all the bailout / mortgage delay businesses the evicted would be able to file for unemployment and that $$$ would go to landlords bringing the market price for rentals up.
If property values went down in price new owners could buy in and if more renters were looking for a place to live. 1. rental properties would go up in value and 2. property owners NOT THE BANKS would get the benefit of government bailouts. (unemployment checks would pay rent)
The way things are structured now the banks benefit from nearly all the bailout $$$. They’re tactic is to just wait the market out surviving off government credit.
shadash | November 10th, 2008 at 6:41 amDawg,
It’s going to take a stealth team to grab and go before anyone knows what hit them.
The listing on Gold for $184,900? An offer came in last night for $220,000.
The internet is killing the chances of getting good deals on MLS-listed properties. We have to round up a bunch of bank-owned properties that are loitering off-stage and make a bulk offer around the first week of December.
Jim the Realtor | November 10th, 2008 at 8:17 amThe internet is killing the chances of getting good deals on MLS-listed properties.
I know, I know. What gets me is that the internet has the unfailing ability to attract the dumbest buyer like no other medium. Until we run out of dumb buyers I’m resigned to waiting. Your idea of bulk purchases sounds good as “we” (the generic smarter guys in the room we) can skim the best of the litter and then in turn sell the runts to the internet crowd.
Rob Dawg | November 10th, 2008 at 10:12 amr378n8wl15ig02n1
Carmelo Sims | November 12th, 2008 at 2:28 pm