Posts Tagged ‘FHLMC’

I know it’s been a while but I have been busy with SAFE act tests. But this nugget was too good to not pass on. Earlier this week FHLMC (Freddie Mac) CEO Ed Haldeman stated that his company has seen over a 600% increase in the number of short sales that have closed with his company. The increase he was citing was tracked from 2008.

This is sign that banks are looking for ways to soften the blow of foreclosures entering the economy. Haldeman went on to say that “Freddie Mac is doing everything it can to prevent more foreclosures, and that short sales are becoming an ever popular tool in situations where foreclosure is imminent and modifications have failed.” Look for that number to increase even more dramatically as HAFA (Home Affordable Foreclosure Act) program starts to be implemented since its enactment in April of 2010.

What does this mean for the average Realtor? More business!

Stay tuned for more updates.

Share on Facebook

Let’s talk about short sales. The definition of a short sale is to sell a home short of what is owed to a lending institution thereby making them lose money. Short sales are used when a home owner decides that their property is no longer worth what they paid for and they don’t want to go into foreclosure with their lender. The homeowner will list their property with a real estate agent who, upon receiving an offer, negotiates with the lender to get them to accept a deficiency on their loan. As you can imagine lenders are not fond of losing money so they fight with the agent and homeowner to not accept the negotiated price. It is up to the agent to prove the deficient value and up to the homeowner to show that they can no longer make the payment. This process is a lengthy one and can take up to 6 months, even more in certain situations. But this is a far better alternative than foreclosure for all parties concerned. The homeowner gets to stay in the house, sometimes without payment, the agent makes a commission, and the lender gets the property back damage free. President Obama, HUD, FNMA, FHLMC, and most servicing company believe that this is a WIN/WIN for all concerned. So why is it this not the preferred method for upside homeowners to dispose of their properties? Simple, most lenders are stuck in the old REO (real estate owned) days where the homeowner is foreclosed on and physically removed from the property by law enforcement. I will compare the two methods of home transfer, REO vs. Short Sale, next week.

Be sure to take a look at our Mortgage Articles

Share on Facebook

As we wind down towards the end of 2009, it is important to note which direction interest rates tend to go as we inch closer to 2010. After Thanksgiving the month of December sees Mortgage Bond traders on Wall Street tending to take more time off as Christmas approaches, with the week between Christmas and New Years being a ghost town for all of Wall Street. What does this mean for people who are trying to figure out when the best time to lock the interest rate on their loan is? The easiest way to describe this time is “be cautious”. Rates normally go up during the last month of the year but there have been exceptions. Last year being one of them, we saw rates slightly dip during December but if you look at a bond chart you will see the rates were all over the board. If you don’t have time to watch the market or you don’t understand how the bond market relates to FHA or Conventional (FNMA, FHLMC) interest rates, then by all means follow my Twitter account, @Hollander_FHA. I post a tweet a few times a day letting my followers know what is happening with the market. If you are unable to follow then my recommendation is to lock in your rates before Thanksgiving.

Be sure to take a look at our Mortgage Articles

Share on Facebook