Increased Foreclosure Starts Loom

Increased Foreclosure Starts Loom

Short Sale Solutions

Eli Tene, the Principal and Managing Director of the Peak entities, is concerned over the spike in Notice of Default filings that were issued in January 2015. He is referring to the Black Knight Financial Services report earlier this year that reported foreclosures are at a 12-month high. According to Tene, Even though the spike is nowhere near the levels we saw a half a decade ago, the trend is aiming towards “a new era of defaults, and along with it a return to increased inventories of distressed assets to investor balance sheets.”

Tene believes the HAMP programs that offered permanent loan modifications for homeowners are a driving force behind it. “Nearly 238,000 permanent loan modifications arranged by lenders and servicers to help distressed borrowers are now in default (defined at 90 days or more past due on payments). And, as of December 31st, 2014, 10% of active HAMP loan modifications are behind one or two months on payments increasing the likelihood of a re-default.”

“It’s important to note,” Tene states, “that past programs to assist distressed homeowners have addressed the symptoms of a previously raging housing crisis, but haven’t enacted a true cure. The fact that thousands of Americans could lose their home is still real. Lenders and servicers could face a deluge of defaults under new regulatory conditions that complicate the already complex process of loss mitigation.”

 

 

Source: prweb.com

Increased Foreclosure Starts Loom

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