There are now 3.5 million mortgages at least 90 days delinquent. In addition, 2 million mortgages are at least 180 days delinquent- in Las Vegas the 90-day delinquency rate is 21.7%; in Miami it's 28.8%.
The best way to avoid foreclosure is to prevent the filing of a Notice of Default. If there is a problem making mortgage payments, call or write to the lender's Loss Mitigation Department without delay and explain the situation. Be prepared to provide financial information, such as monthly income and expenses. The lender may be able to work with the situation and the homeowner may not qualify for assistance if they abandon the property.
If missed payments can't be made up and the lender will not work with the situation, here are a few other options to stop foreclosure:
#Mortgage Modification- Homeowners may be able to refinance the debt and/or extend the term of the mortgage loan.
#Partial Claim: Your lender may be able to work with the homeowner to obtain an interest- free loan from HUD to bring the mortgage current.
#Sell Your Home: Interview real estate agents to get an opinion of market value and average DOM to sell the home.
#Consider a Short Sale: If a home is worth less than the amount owed, it might be a candidate for a short sale. A short sale affects credit but it's not as bad as a foreclosure.
#Sign a Deed-in-Lieu of Foreclosure: The homeowner gives the lender a properly prepared and notarized deed, and the lender forgives the mortgage, effectively canceling the foreclosure action.
"Mistakenly, many homeowners facing foreclosure wait until the 11th hour to try and do something about it in order to avoid the after effects of home foreclosure. Once in default, the homeowner faces the real possibility of losing his or her home," says Lance Falow, Partner at The Heathcote Group.
Act now. If homeowners do nothing, they will lose their homes and their good credit rating.
The Heathcote Group
The Heathcote Group is a real estate investment firm with a concentration in conveyancing, foreclosure and title issues.The Heathcote Group lends money on commercial property and non-owner occupied residential property and also buys defaulted mortgages and distressed property, both in New York and Florida.
Tuesday, March 16, 2010
Sunday, March 14, 2010
Lance Falow of The Heathcote Group comments on the Commercial Real Estate market.
In nearly 50 percent of the loans coming due, the borrower owes more than the property is worth, raising the risk of a wave of defaults. Loans likely to fail were made at the height of the run-up in valuesIt's clearly one of the top priorities from a risk-management standpoint and it will be highly dependent on what happens with the economy. Instead of lending, the banks put more money in government securities-where it provides that capital cushion and generates a nice bit of interest income for the bank.The bank can borrow from the government at very low rates, but it can't get much of a return-as long as it invests that money prudently, rather than in some high- interest, high-risk investment. "That is what causes a credit collapse like this,"says Lance Falow Partner at The Heathcote Group.
Everybody is holding their cash. Banks, which have provided most of the interim, 3-to7-year mortgages, are still reluctant to make commercial real estate (CRE) loans as they pare down their CRE concentrations under pressure from regulators and shareholders.
The volume of loans from sales or refinancing this year will be moderate, and that’s good news. “There isn’t enough capital in the system, especially if you look out two to four years when a greater volume of loans starts maturing," adds Falow. "All the traditional lending sectors are contributing to that shortage."
In 2010, approximately $475 billion of commercial real estate loans nationwide are expected to maturedelinquencies on loans in commercial mortgage-backed securities will reach 6 percent by the first quarter of this year and could reach 12 percent by 2012.
"At the end of the day, we need better real estate fundamentals,” says Falow.
Everybody is holding their cash. Banks, which have provided most of the interim, 3-to7-year mortgages, are still reluctant to make commercial real estate (CRE) loans as they pare down their CRE concentrations under pressure from regulators and shareholders.
The volume of loans from sales or refinancing this year will be moderate, and that’s good news. “There isn’t enough capital in the system, especially if you look out two to four years when a greater volume of loans starts maturing," adds Falow. "All the traditional lending sectors are contributing to that shortage."
In 2010, approximately $475 billion of commercial real estate loans nationwide are expected to maturedelinquencies on loans in commercial mortgage-backed securities will reach 6 percent by the first quarter of this year and could reach 12 percent by 2012.
"At the end of the day, we need better real estate fundamentals,” says Falow.
Wednesday, March 10, 2010
Lance Falow of The Heathcote Group lends insight on distressed Florida market
The influx of buyers into the Florida market comes as the state largest commercial institution is in the midst of selling off nonperforming real estate loans that triggered $80 million in losses. Florida’s largest credit union is preparing to auction off at a deep discount a waterfront site slated for a condominium development in Palm Beach County.
While the institutional buyers begin to move into the Florida housing market, it’s not difficult to see why individual investors are also focused on the sunshine state. The influx of foreclosures has caused prices to drop by as much as 50 percent in some areas. The Florida real estate market was particularly hard-hit, by the implosion of the housing bubble that characterized the past 10 years. Distressed properties are starting to sell, and buyers - especially foreign buyers - are already eyeing the market.
Property values won't really dive until bank regulators get tougher and banks start foreclosing. That's when sellers will become realistic about how far they need to drop prices. To date banks have been ill equipped to deal with the magnitude of requests. Investors have begun purchasing these properties, oftentimes at surprisingly low prices, and turning them into rentals.Purchasing these homes at distressed property prices and converting them into rental homes not only helps the investors, it helps many families get into a new home and possibly one they could never afford to purchase outright.
The Heathcote Group
The Heathcote Group is a real estate investment firm with a concentration in conveyancing, foreclosure and title issues.The Heathcote Group lends money on commercial property and non-owner occupied residential property and also buys defaulted mortgages and distressed property, both in New York and Florida.
While the institutional buyers begin to move into the Florida housing market, it’s not difficult to see why individual investors are also focused on the sunshine state. The influx of foreclosures has caused prices to drop by as much as 50 percent in some areas. The Florida real estate market was particularly hard-hit, by the implosion of the housing bubble that characterized the past 10 years. Distressed properties are starting to sell, and buyers - especially foreign buyers - are already eyeing the market.
Property values won't really dive until bank regulators get tougher and banks start foreclosing. That's when sellers will become realistic about how far they need to drop prices. To date banks have been ill equipped to deal with the magnitude of requests. Investors have begun purchasing these properties, oftentimes at surprisingly low prices, and turning them into rentals.Purchasing these homes at distressed property prices and converting them into rental homes not only helps the investors, it helps many families get into a new home and possibly one they could never afford to purchase outright.
The Heathcote Group
The Heathcote Group is a real estate investment firm with a concentration in conveyancing, foreclosure and title issues.The Heathcote Group lends money on commercial property and non-owner occupied residential property and also buys defaulted mortgages and distressed property, both in New York and Florida.
Lance Falow Partner at The Heathcote Group discusses benefits of buying defaulted mortgages
Today's market is flooded with delinquent paper, and banks are taking discounts on their mortgages like never before.There are two basic methods for cashing in on delinquent notes. Either acquire the actual property through a short sale or purchase the mortgage (not the property) from the lender.
Smart investors prove that when it comes to troubled commercial real estate, it makes a lot of sense to buy defaulted mortgages from the bank, rather than wait for the bank holding the notes to foreclose. Once you own the nonperforming notes, then you become the lender, you're in the driver's seat, and you can foreclose and take over the property yourself - often on unbeatable terms.
In these days of underwater borrowers, rising delinquency rates, and internal and external pressure to minimize foreclosures, banks are sitting on a mountain of bad mortgages they would love to get rid of. They're stuck with loans they can't service and they want them off their books. It is a growing business and in today's real estate market and it represents a significant acquisition opportunity.
The Heathcote Group
The Heathcote Group is a real estate investment firm with a concentration in conveyancing, foreclosure and title issues.The Heathcote Group lends money on commercial property and non-owner occupied residential property and also buys defaulted mortgages and distressed property, both in New York and Florida.
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Smart investors prove that when it comes to troubled commercial real estate, it makes a lot of sense to buy defaulted mortgages from the bank, rather than wait for the bank holding the notes to foreclose. Once you own the nonperforming notes, then you become the lender, you're in the driver's seat, and you can foreclose and take over the property yourself - often on unbeatable terms.
In these days of underwater borrowers, rising delinquency rates, and internal and external pressure to minimize foreclosures, banks are sitting on a mountain of bad mortgages they would love to get rid of. They're stuck with loans they can't service and they want them off their books. It is a growing business and in today's real estate market and it represents a significant acquisition opportunity.
The Heathcote Group
The Heathcote Group is a real estate investment firm with a concentration in conveyancing, foreclosure and title issues.The Heathcote Group lends money on commercial property and non-owner occupied residential property and also buys defaulted mortgages and distressed property, both in New York and Florida.
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