Foreclosure Insider

Foreclosure Insider

DALLAS — (Sept. 17, 2007) As foreclosures escalate, states and the president are busy trying to mitigate the projected fallout, according to https://www.mortgagedaily.com — a dominant source of online news for the mortgage industry.

Countrywide Financial Corp. reported its August foreclosure rate was 1.20 percent, surging from1.04 percent in July.

Through year-to-date August, more than four out of every 1,000 household’s saw their mortgage move into the ranks of real estate owned, climbing from three out of every 1,000 households during the same period last year, ForeclosureS.com reported.

FBR Investment Management Inc. wrote that serious subprime delinquency was 13.44 percent on June 30, a record, and is projected to reach 14.54 percent next year.

Serious delinquency on non-owner occupied residential properties is driving defaults in states with the fastest rising delinquency, the Mortgage Bankers Association reported. Nearly one-third of prime loans in Nevada that were delinquent 90 days as of June 30 were investor properties.

Loans entering foreclosure ended the second quarter at 0.65 percent, MBA said. Foreclosure starts were 29 BPS higher for subprime and 11 BPS lower for FHA.

“What continues to drive the national numbers, however, is what is happening in the states of California, Florida, Nevada and Arizona,” said MBA’s economist in the announcement.

States are scurrying to beef up foreclosure prevention and assistance.

The Ohio Foreclosure Prevention Task Force released key recommendations. In Connecticut, a task force is expected to soon complete a definitive analysis and recommendations for subprime borrowers in foreclosure.

Nebraska’s Department of Banking and Finance warned borrowers of companies offering foreclosure rescue services. Michigan’s Democrats announced a bill intended to curtail practices that lead to foreclosures.

Regulators have been encouraging servicers to fully pursue loss mitigation strategies whenever possible — emphasizing governing agreements may allow servicers of securitized loans to contact borrowers in advance of loan resets, determine whether default is reasonably foreseeable, and then apply loss mitigation strategies.

The White House announced a proposed a temporary change to the tax code that would stop taxing foreclosed borrowers for charged off deficiency balances.

More foreclosure news at:
https://www.mortgagedaily.com/news/Foreclosures.asp

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Founded in 1998, MortgageDaily.com is the dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliate publications.

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Source: MortgageDaily.com