The Housing Fix

  • Foreclosure

    When Bank of America resumes its foreclosures next week, it is going to find that the process is a lot tougher than it was just a few weeks ago.

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    The foreclosure process in the US is slowing, enabling delinquent borrowers to stay in their homes for months after they stop making mortgage payments, according to one of the largest lenders. The FT reports.

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    Bank of America and GMAC are firing up their formidable foreclosure machines again, after a brief pause, but homeowners are asking why lenders often balk at short sales. The New York Times reports.

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    The mortgage mess that lead to foreclosure freezes by several large banks across much of the country may slow down the ability of banks to issue new mortgages, which could push the housing market into a sharp downward spiral.

  • Sold sign

    Noise. There's an awful lot of it in today's report on September existing home sales from the National Association of Realtors. Even the markets could hear the noise, as they didn't react all that much to the 10 percent jump in sales that completely beat expectations.

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    One study says 36 percent of Americans believe walking away from their mortgage and their home is OK. What do you say?

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    Foreclosure "actions" in Q3, which include anything from default notices to bank repossessions, rose in 65 percent of the nation's top 200 housing markets.

  • Mortgage

    Over at Barry Ritholtz’s “The Big Picture,” Bill Black has been publishing a series of posts on how mortgage lending should be regulated. Black, who is the author of “The Best Way To Rob A Bank Is To Own One,” does an admirable job at pointing out how pervasive fraud arises and undermines market discipline.

  • Peter Wallison more or less demolishes the conventional wisdom—and now the official Federal Crisis Inquiry Commission view—when it comes to the collapse of Fannie Mae and Freddie Mac.

  • Foreclosure

    What leaked last week was the idea of reducing Fannie, Freddie and FHA loan limits, currently at $729,750 for high-priced markets to $625,000.

  • Foreclosed Home

    Anyone who expected to see a big jump in foreclosure numbers, now that banks/servicers are supposedly ramping up the post-robo process again, got a big surprise today.

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    The Obama administration finally released it's "white paper" on how to eventually wind down Fannie Mae and Freddie Mac. Really no surprises. They offer three scenarios and don't throw their weight behind any one in particular.

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