coalition of seven major public pension systems, led by New York City
Comptroller John Liu, has asked the boards of four of the largest U.S.
banks to examine their mortgage and foreclosure practices.
In
a letter dated January 6, the pension fund coalition urged the Audit
Committees of Bank of America Corp, Citigroup Inc, JPMorgan Chase &
Co, and Wells Fargo L& Co to launch independent examinations of their loan modification, foreclosure, and securitization policies and procedures.
"This
will help to prevent future compliance failures and restore the
confidence of shareholders, regulators, legislators and mortgage
markets participants," the coalition said in the letter.
Bank representatives could not be reached for immediate comment on Sunday.
On
January 7, in a decision that could slow foreclosures nationwide,
Massachusetts' highest court voided the seizure of two homes by Wells
Fargo & Co and US Bancorp after the banks failed to show they held
the mortgages at the time they foreclosed.
That
sent fears through the market as investors worried that decision could
threaten lenders' ability to work through hundreds of thousands of
pending foreclosures.
The
Supreme Judicial Court of Massachusetts' unanimous decision upheld a
lower court ruling and was among the earliest cases to address the
validity of foreclosures done without proper documentation.
That
issue, including the use of "robo-signers" who approved foreclosure
documents without reviewing them, last year prompted an uproar that led
lenders such as Bank of America, JPMorgan Chase and Ally Financial Inc
to temporarily stop seizing homes.
Courts
in other U.S. states are considering similar cases, and all 50 state
attorneys general are examining whether lenders are forcing people out
of their homes improperly.
The
pension fund coalition represents more than $430 billion in pension
fund investments, including $5.7 billion invested in the four banks.
Liu
represents the five NYC pension funds. The coalition also includes the
Connecticut Retirement Plans and Trust Funds, the Illinois State Board
of Investment, the Illinois State Universities Retirement System, the
New York State Common Retirement Fund, the North Carolina Retirement
Systems, and the Oregon Public Employees Retirement Fund.
The
coalition called for the banks to report the findings of their
independent examinations in their 2011 proxy statements this spring.
At
the end of the last year, the coalition's combined holdings in each
bank included: 97.1 million Bank of America shares valued at $1.3
billion; 226.6 million Citigroup shares valued at $1.1 billion; 40.7
million JPMorgan Chase shares valued at $1.7 billion, and 50.6 million
Wells Fargo shares at $1.6 billion.
It's about
time public pension funds get involved and use their clout to pressure
banks to examine their loan modification, foreclosure, and
securitization policies and procedures. I'm not sure anything will come
out of this but the foreclosure crisis has sounded the alarm bell and
banks need to respond to make sure that measures are in place to prevent
this type of abuse from ever happening again.
Finally, I leave you with some thoughts from Graham Turner of GFC Economics, one of the best independent economic consultancy shops for institutional clients:
A small number of states continue to be the hardest hit. California, Florida, Arizona, Illinois and Michigan account for half of the nation's total filings.
Many analysts believe that housing cannot recover in markets where unemployment is above 10%. Low interest rates on mortgages have not aided home sales, at least not in a measurable way. Government's attempt to rectify the situations have had mixed success. Tax credits, offered early in the year, boosted buying activity, but those benefits expired in April. The Home Affordable Modification Program (HAMP), meant to refinance mortgages to keep people in their homes, was simply a failure.
Another problem that faces the housing recovery is that many potential home buyers believe that prices could go even lower. S&P forecast that home prices could drop another 7% to 10% this year.
James J. Saccacio, chief executive officer of RealtyTrac, offered little hope for the beginning of 2011. He said "many of the foreclosure proceedings that were stopped in late 2010 -- which we estimate may be as high as a quarter million -- will likely be re-started and add to the numbers in early 2011."
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A
coalition of seven major public pension systems, led by New York City
Comptroller John Liu, has asked the boards of four of the largest U.S.
banks to examine their mortgage and foreclosure practices.
In
a letter dated January 6, the pension fund coalition urged the Audit
Committees of Bank of America Corp, Citigroup Inc, JPMorgan Chase &
Co, and Wells Fargo L& Co to launch independent examinations of their loan modification, foreclosure, and securitization policies and procedures.
"This
will help to prevent future compliance failures and restore the
confidence of shareholders, regulators, legislators and mortgage
markets participants," the coalition said in the letter.
Bank representatives could not be reached for immediate comment on Sunday.
On
January 7, in a decision that could slow foreclosures nationwide,
Massachusetts' highest court voided the seizure of two homes by Wells
Fargo & Co and US Bancorp after the banks failed to show they held
the mortgages at the time they foreclosed.
That
sent fears through the market as investors worried that decision could
threaten lenders' ability to work through hundreds of thousands of
pending foreclosures.
The
Supreme Judicial Court of Massachusetts' unanimous decision upheld a
lower court ruling and was among the earliest cases to address the
validity of foreclosures done without proper documentation.
That
issue, including the use of "robo-signers" who approved foreclosure
documents without reviewing them, last year prompted an uproar that led
lenders such as Bank of America, JPMorgan Chase and Ally Financial Inc
to temporarily stop seizing homes.
Courts
in other U.S. states are considering similar cases, and all 50 state
attorneys general are examining whether lenders are forcing people out
of their homes improperly.
The
pension fund coalition represents more than $430 billion in pension
fund investments, including $5.7 billion invested in the four banks.
Liu
represents the five NYC pension funds. The coalition also includes the
Connecticut Retirement Plans and Trust Funds, the Illinois State Board
of Investment, the Illinois State Universities Retirement System, the
New York State Common Retirement Fund, the North Carolina Retirement
Systems, and the Oregon Public Employees Retirement Fund.
The
coalition called for the banks to report the findings of their
independent examinations in their 2011 proxy statements this spring.
At
the end of the last year, the coalition's combined holdings in each
bank included: 97.1 million Bank of America shares valued at $1.3
billion; 226.6 million Citigroup shares valued at $1.1 billion; 40.7
million JPMorgan Chase shares valued at $1.7 billion, and 50.6 million
Wells Fargo shares at $1.6 billion.
It's about
time public pension funds get involved and use their clout to pressure
banks to examine their loan modification, foreclosure, and
securitization policies and procedures. I'm not sure anything will come
out of this but the foreclosure crisis has sounded the alarm bell and
banks need to respond to make sure that measures are in place to prevent
this type of abuse from ever happening again.
Finally, I leave you with some thoughts from Graham Turner of GFC Economics, one of the best independent economic consultancy shops for institutional clients:
A small number of states continue to be the hardest hit. California, Florida, Arizona, Illinois and Michigan account for half of the nation's total filings.
Many analysts believe that housing cannot recover in markets where unemployment is above 10%. Low interest rates on mortgages have not aided home sales, at least not in a measurable way. Government's attempt to rectify the situations have had mixed success. Tax credits, offered early in the year, boosted buying activity, but those benefits expired in April. The Home Affordable Modification Program (HAMP), meant to refinance mortgages to keep people in their homes, was simply a failure.
Another problem that faces the housing recovery is that many potential home buyers believe that prices could go even lower. S&P forecast that home prices could drop another 7% to 10% this year.
James J. Saccacio, chief executive officer of RealtyTrac, offered little hope for the beginning of 2011. He said "many of the foreclosure proceedings that were stopped in late 2010 -- which we estimate may be as high as a quarter million -- will likely be re-started and add to the numbers in early 2011."
bench craft company>EU PlayStation Store update 9th Feb PlayStation 3 <b>News</b> - Page 1 <b>...</b>
Read our PlayStation 3 news of EU PlayStation Store update 9th Feb.
Fox <b>News</b> focus group in Iowa: President Obama is Muslim | The <b>...</b>
On Sean Hannity's program Monday night, pollster Frank Luntz hosted a focus group of Iowa Republican caucus-goers, gauging their reaction of President Barack Obama's Sunday afternoon interview with Fox News' Bill O'Reilly. ...
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame <b>...</b>
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame: CP+ 2011:Sigma has introduced the 12-24mm F4.5-5.6 EX DG HSM II, an updated version of its ultra-wideangle zoom for full frame SLRs. It uses a revised optical formula which ...
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[reefeed]
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bench craft companyEU PlayStation Store update 9th Feb PlayStation 3 <b>News</b> - Page 1 <b>...</b>
Read our PlayStation 3 news of EU PlayStation Store update 9th Feb.
Fox <b>News</b> focus group in Iowa: President Obama is Muslim | The <b>...</b>
On Sean Hannity's program Monday night, pollster Frank Luntz hosted a focus group of Iowa Republican caucus-goers, gauging their reaction of President Barack Obama's Sunday afternoon interview with Fox News' Bill O'Reilly. ...
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame <b>...</b>
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame: CP+ 2011:Sigma has introduced the 12-24mm F4.5-5.6 EX DG HSM II, an updated version of its ultra-wideangle zoom for full frame SLRs. It uses a revised optical formula which ...
bench craft company
A
coalition of seven major public pension systems, led by New York City
Comptroller John Liu, has asked the boards of four of the largest U.S.
banks to examine their mortgage and foreclosure practices.
In
a letter dated January 6, the pension fund coalition urged the Audit
Committees of Bank of America Corp, Citigroup Inc, JPMorgan Chase &
Co, and Wells Fargo L& Co to launch independent examinations of their loan modification, foreclosure, and securitization policies and procedures.
"This
will help to prevent future compliance failures and restore the
confidence of shareholders, regulators, legislators and mortgage
markets participants," the coalition said in the letter.
Bank representatives could not be reached for immediate comment on Sunday.
On
January 7, in a decision that could slow foreclosures nationwide,
Massachusetts' highest court voided the seizure of two homes by Wells
Fargo & Co and US Bancorp after the banks failed to show they held
the mortgages at the time they foreclosed.
That
sent fears through the market as investors worried that decision could
threaten lenders' ability to work through hundreds of thousands of
pending foreclosures.
The
Supreme Judicial Court of Massachusetts' unanimous decision upheld a
lower court ruling and was among the earliest cases to address the
validity of foreclosures done without proper documentation.
That
issue, including the use of "robo-signers" who approved foreclosure
documents without reviewing them, last year prompted an uproar that led
lenders such as Bank of America, JPMorgan Chase and Ally Financial Inc
to temporarily stop seizing homes.
Courts
in other U.S. states are considering similar cases, and all 50 state
attorneys general are examining whether lenders are forcing people out
of their homes improperly.
The
pension fund coalition represents more than $430 billion in pension
fund investments, including $5.7 billion invested in the four banks.
Liu
represents the five NYC pension funds. The coalition also includes the
Connecticut Retirement Plans and Trust Funds, the Illinois State Board
of Investment, the Illinois State Universities Retirement System, the
New York State Common Retirement Fund, the North Carolina Retirement
Systems, and the Oregon Public Employees Retirement Fund.
The
coalition called for the banks to report the findings of their
independent examinations in their 2011 proxy statements this spring.
At
the end of the last year, the coalition's combined holdings in each
bank included: 97.1 million Bank of America shares valued at $1.3
billion; 226.6 million Citigroup shares valued at $1.1 billion; 40.7
million JPMorgan Chase shares valued at $1.7 billion, and 50.6 million
Wells Fargo shares at $1.6 billion.
It's about
time public pension funds get involved and use their clout to pressure
banks to examine their loan modification, foreclosure, and
securitization policies and procedures. I'm not sure anything will come
out of this but the foreclosure crisis has sounded the alarm bell and
banks need to respond to make sure that measures are in place to prevent
this type of abuse from ever happening again.
Finally, I leave you with some thoughts from Graham Turner of GFC Economics, one of the best independent economic consultancy shops for institutional clients:
A small number of states continue to be the hardest hit. California, Florida, Arizona, Illinois and Michigan account for half of the nation's total filings.
Many analysts believe that housing cannot recover in markets where unemployment is above 10%. Low interest rates on mortgages have not aided home sales, at least not in a measurable way. Government's attempt to rectify the situations have had mixed success. Tax credits, offered early in the year, boosted buying activity, but those benefits expired in April. The Home Affordable Modification Program (HAMP), meant to refinance mortgages to keep people in their homes, was simply a failure.
Another problem that faces the housing recovery is that many potential home buyers believe that prices could go even lower. S&P forecast that home prices could drop another 7% to 10% this year.
James J. Saccacio, chief executive officer of RealtyTrac, offered little hope for the beginning of 2011. He said "many of the foreclosure proceedings that were stopped in late 2010 -- which we estimate may be as high as a quarter million -- will likely be re-started and add to the numbers in early 2011."
bench craft company
bench craft companyEU PlayStation Store update 9th Feb PlayStation 3 <b>News</b> - Page 1 <b>...</b>
Read our PlayStation 3 news of EU PlayStation Store update 9th Feb.
Fox <b>News</b> focus group in Iowa: President Obama is Muslim | The <b>...</b>
On Sean Hannity's program Monday night, pollster Frank Luntz hosted a focus group of Iowa Republican caucus-goers, gauging their reaction of President Barack Obama's Sunday afternoon interview with Fox News' Bill O'Reilly. ...
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame <b>...</b>
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame: CP+ 2011:Sigma has introduced the 12-24mm F4.5-5.6 EX DG HSM II, an updated version of its ultra-wideangle zoom for full frame SLRs. It uses a revised optical formula which ...
bench craft company
bench craft companyEU PlayStation Store update 9th Feb PlayStation 3 <b>News</b> - Page 1 <b>...</b>
Read our PlayStation 3 news of EU PlayStation Store update 9th Feb.
Fox <b>News</b> focus group in Iowa: President Obama is Muslim | The <b>...</b>
On Sean Hannity's program Monday night, pollster Frank Luntz hosted a focus group of Iowa Republican caucus-goers, gauging their reaction of President Barack Obama's Sunday afternoon interview with Fox News' Bill O'Reilly. ...
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame <b>...</b>
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame: CP+ 2011:Sigma has introduced the 12-24mm F4.5-5.6 EX DG HSM II, an updated version of its ultra-wideangle zoom for full frame SLRs. It uses a revised optical formula which ...
bench craft companyEU PlayStation Store update 9th Feb PlayStation 3 <b>News</b> - Page 1 <b>...</b>
Read our PlayStation 3 news of EU PlayStation Store update 9th Feb.
Fox <b>News</b> focus group in Iowa: President Obama is Muslim | The <b>...</b>
On Sean Hannity's program Monday night, pollster Frank Luntz hosted a focus group of Iowa Republican caucus-goers, gauging their reaction of President Barack Obama's Sunday afternoon interview with Fox News' Bill O'Reilly. ...
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame <b>...</b>
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame: CP+ 2011:Sigma has introduced the 12-24mm F4.5-5.6 EX DG HSM II, an updated version of its ultra-wideangle zoom for full frame SLRs. It uses a revised optical formula which ...
bench craft companyEU PlayStation Store update 9th Feb PlayStation 3 <b>News</b> - Page 1 <b>...</b>
Read our PlayStation 3 news of EU PlayStation Store update 9th Feb.
Fox <b>News</b> focus group in Iowa: President Obama is Muslim | The <b>...</b>
On Sean Hannity's program Monday night, pollster Frank Luntz hosted a focus group of Iowa Republican caucus-goers, gauging their reaction of President Barack Obama's Sunday afternoon interview with Fox News' Bill O'Reilly. ...
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame <b>...</b>
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame: CP+ 2011:Sigma has introduced the 12-24mm F4.5-5.6 EX DG HSM II, an updated version of its ultra-wideangle zoom for full frame SLRs. It uses a revised optical formula which ...
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bench craft companyEU PlayStation Store update 9th Feb PlayStation 3 <b>News</b> - Page 1 <b>...</b>
Read our PlayStation 3 news of EU PlayStation Store update 9th Feb.
Fox <b>News</b> focus group in Iowa: President Obama is Muslim | The <b>...</b>
On Sean Hannity's program Monday night, pollster Frank Luntz hosted a focus group of Iowa Republican caucus-goers, gauging their reaction of President Barack Obama's Sunday afternoon interview with Fox News' Bill O'Reilly. ...
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame <b>...</b>
Sigma announces 12-24mm f/4.5-5.6 EX DG HSM II for full frame: CP+ 2011:Sigma has introduced the 12-24mm F4.5-5.6 EX DG HSM II, an updated version of its ultra-wideangle zoom for full frame SLRs. It uses a revised optical formula which ...
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If your adjustable rate mortgage has recently reset and your monthly payments have gone so high you can't afford them, you may find yourself desperately trying to hang on to a property that's no longer worth what you paid for it. So, if want to avoid foreclosure, what's next? The answer is a short sale. To learn how to avoid foreclosure with short sales and the answer to some commonly asked questions, keep reading.
What are short sales?
Short sales are a deal between the lender and the borrower to sell the property for less than the amount that is owed on the mortgage. Essentially, the lender accepts less than the total debt to avoid foreclosure processing and expenses.
What are the benefits of a short sale?
For the borrower, or homeowner, these deals mean they can avoid foreclosure with short sales, meaning they can sidestep irreparable damage to their credit report. According to the National Short Sale Center, a foreclosure can stay on your credit history for as long as 10 years, making it difficult to purchase a new home or obtain credit.
Does that mean a short sale won't affect my credit rating?
While you can avoid foreclosure with short sales and significant credit score damage, the use of a short sale can still affect your credit score by about 75 to 100 points. So, even though they're not as devastating as a full foreclosure, you will still feel the repercussions for a number of years.
Why do lenders agree to short sales?
Lenders agree to short sales mostly because they want to avoid foreclosure too. Foreclosures are expensive and time-consuming processes that involve lawyers, taxes, uncollected interest payments, accumulating bad debt and a generally overwhelming administrative process that most lenders simply don't want to deal with. It's actually less expensive for them to agree to a short sale then fight through a foreclosure process.
What are the conditions of a short sale?
You can avoid foreclosure with short sales as long as you meet several conditions. The first is that you must not be able to make your current mortgage payments. The second is that the property must be valued at less than the total amount borrowed. You won't make a profit on a short sale and you will most likely lose a lot of money, but you will avoid foreclosure.
Will every lender agree to a short sale?
Not every lender is going to agree to a short sale, some will require additional payments to settle the debt while others may outright refuse. Typically though, if you meet the conditions outlined above, you can avoid foreclosure with short sales.
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