Opportunities in Today's Real Estate Market, Foreclosures and Short Sales, Taunton-Lakeville Real Estate
Everywhere
you turn today, the talk is about a next wave of foreclosures. I wonder
whether this is accurate information. When I logically assess these
statements and claims in my mind, I cannot understand.
While many Option Arm and adjustable rate mortgages are about to reset, I wonder whether the next wave of foreclosures will be a tsunami or just a few ripples.
How I see it:
Major lenders like JP Morgan Chase, Bank America, Wells Fargo and
many more are offering loan modification programs to homeowners who
would otherwise lose their homes.
Today vs last year: Home Owners who are behind on their payments are better educated on their options. I believe that short sales will be the dominant force in real estate in 2010. and foreclosures, not nearly as many..here's why:
1. A Judge earlier this year, in Massachusetts ruled that due to
improper paperwork two banks improperly foreclosed on two
Springfield-area homes; therefore, the title to these properties have
been "clouded" or defective. Mortgages were not properly recorded, and
sometimes not recorded at all, or recorded well after the date the
mortgage was given. Judges have declared this illegal.. the banks
sold and resold the mortgages multiple times to other investors. This
affected and will continue to affect several homeowners in
pre-foreclosure and foreclosure status. We are continuing to see this
happen in other states as well. Based on this, I am of the opinion, at least right now, that
there will NOT be a so called "glut" of foreclosures, I believe they
will exist and come on the market, but not a wave or tsunami, as we saw
last year and in first quarter 2009.
A. Another case Landmark National Bank v. Kesler, August
28, 2009 , the Kansas Supreme Court held that a nominee company called
MERS has no right or standing to bring an action for foreclosure. MERS
is an acronym for Mortgage Electronic Registration Systems, a private
company that registers mortgages electronically and tracks changes in
ownership. The significance of the holding is that if MERS has no
standing to foreclose, then nobody has standing to foreclose - on 60 million mortgages?
That is the number of American mortgages currently reported to be held
by MERS. Over half of all new U.S. residential mortgage loans are
registered with MERS and recorded in its name. Holdings of the Kansas
Supreme Court are not binding on the rest of the country, but they are
dicta of which other courts take note; and the reasoning behind the
decision is sound. This will halt so many foreclosures, giving
homeowners time to consider their options. and yes, the banks will
continue to attempt foreclosure.
2. Lenders have to be accountable to their investors and their
bottom line. Foreclosures are toxic assets and are cost prohibitive.
Lenders do not want real estate, they want their money. Would you want
to own a house where you would have to fund an asset manager, real
estate agent, repairs, liability insurance and more. The cost of
foreclosure on some homes can be greater than what the home is worth!
3.Because of Obama's new Making Homes Affordable program, banks have become kinder and gentler in the way of loan modifications for those who qualify.
4. For homeowners unable to qualify for a loan modification, short sales are the other best alternative. I believe that our inventory will consist of more short sales than foreclosures in 2010.
Lori Lincoln is knowledgeable, experienced and educated in
foreclosures and short sales. Not all agents know the process, please
call her if you or someone you know needs help. http://LoriLincolnTeam.com
Lori Lincoln
Keller Williams Realty
508-878-0917
Search Thousands of MLS listings for Taunton,Rehoboth,Lakeville, Assonet,Somerset, Raynham, Easton, Massachusetts
$8000 tax Credit. Luxury Home Specialist in MA
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