Category Archives: Foreclosure

MN REO Foreclosures

The current residential shadow inventory as of July 2011 declined slightly to 1.6 million units, representing a supply of 5 months, CoreLogic reported today. This is down from 1.9 million units, a supply of 6 months, from a year ago, and follows a decline from April 2011 when shadow inventory stood at 1.7 million units. The moderate decline in shadow inventory is being driven by a pace of new delinquencies that is slower than the disposition pace of distressed assets.
Highlights from the report:
Of the 1.6 million properties currently in the shadow inventory, 770,000 units are seriously delinquent, 430,000 are in some stage of foreclosure, and 390,000 are already in REO.
As of July 2011 the shadow inventory is 22 percent lower than the peak in January 2010 at 2 million units, 8.4-months supply.

A Fed Official Reports The Housing Market Is Severely Out Of Balance

The severely out of balance housing market is greatly hampering the nation’s economic recovery, and solving the supply-and-demand issues in the housing market needs to be an immediate priority, Elizabeth Duke, member of the Board of Governors of the Federal Reserve, said late last week to the Federal Reserve Board Policy Forum during a speech, The Housing Market Going Forward: Lessons Learned from the Recent Crisis.

Duke said that addressing the swelling inventories of REOs is critical for helping to rebalance the housing market. An inventory of at least 1 million REOs this year as well as 2012 and 2013 is expected to pass through the market, and “REO properties are weighing heavily on the market for owner-occupied house” and bringing overall home prices down, Duke said.

Duke said that converting a portion of residential REOs to rental units may be one reasonable option for lenders to handle the big wave of foreclosures.

“Such conversions might also be in the best interests of lienholders and guarantors if recoveries from renting out properties exceed those from outright sales,” she said. “Over time, as financing conditions ease and the number of REO properties to be sold declines, the share of properties sold to owner-occupants and sold to investors for rental will adjust commensurately.”

MN HomePath mortgage 3% Down No Mortgage Insurance

Clients now are able to access Fannie Mae’s extensive REO portfolio with streamlined, online access to HomePath Mortgage financing. HomePath Mortgage provides special financing terms exclusively for Fannie Mae real-estate-owned properties and can deliver distinct advantages in a down market:

Search for homes here www.homepath.com

Fannie Mae to pay 3.5% in closing costs through June 30, 2011

Low down payment and flexible mortgage terms

Available for Owner-Occupied, Second and Investment Properties

Down payments as low as 3%

No appraisal fees No Mortgage Insurance required