It's a strategic way to prioritize collections and short sale process. I don't completely understand, but it just shows how complicated and hidden the banks can get with the process.
For prime mortgage servicers, GMAC conducted short sales the fastest, averaging roughly six months per transaction. Also, 53% of their dispositions were short sales. It had a recovery score of 59.3.
The next fastest servicer was Citigroup's servicing arm CitiMortgage, which did a short sale in about seven and a half months, and 56% of dispositions were short sales for a recovery score of 54.4.
Third, was Wells Fargo, conducting short sales in roughly eight months for 34% of its total dispositions. It had a higher recovery score than Citi, however, at 55.6.Countrywide, acquired by Bank of America, had the slowest short sale timeline. It took more than 13 months on average to conduct a short sale there. BofA took more than 11 months, but 59% of its dispositions were short sales. BofA had the lowest recovery score at 45.5.
More Info here:With short sales growing in demand from both distressed borrowers and banks, Deutsche Bank published a "recovery score", examining the speed at which the servicers conducted a short sale and the percentage these transactions take of overall property dispositions over the last year.http://www.housingwire.com/2010/06/23/deutsche-bank-ranks-servicers-on-speed-of-short-sales
Tuesday, January 25, 2011
Time to Invest!
According to Marcus & Millicahp a Real Estate Investment Service Company in the Seattle area there is growing confidence in apartments, hotels and even the downtrodden retail sector is helping pull investors off the bench and back into the game. Some 55% of all respondents to a survey conducted by National Real Estate Investor and Marcus & Millichap Real Estate Investment Services believe that now is the time to buy apartments, followed by retail (32%), undeveloped land (29%), hotel and mixed use (26%), and office and industrial (24%). That enthusiasm is even strong among investors who already own apartment properties, with 70% indicating that now is the time to buy. Conversely, only 36% of office owners believe now is the time to buy office properties. Apartment owners also are bullish on rents, with 41% anticipating that rents will increase over the next 12 months.
"The rental market is just going to continue to improve" for landlords, said Tom Cain, president of research firm Apartment Insights Washington.
Perhaps a sign the shift may be coming?
I hope they're right!
DELAYS????????
Mortgage servicers -- the companies that process monthly payments -- have been ill-equipped to handle the large volume of foreclosures. While it may seem counterintuitive, they seem to have reasons to drag their feet:
· Servicers' philosophies and directives are "constantly in flux,". One may need to raise cash to meet regulatory guidelines, while another may have too much inventory of unsold real estate on its books. Staid corporate cultures and high staff turnover contribute to slow decision-making.
· Servicers don't want to take on the legal and financial responsibilities of owning more homes. As soon as the foreclosure is completed, the lender "immediately assumes liability and carrying costs,". Examples of such costs include property taxes, casualty insurance, repairs and maintenance, and homeowner association dues.
Read more: What delays a mortgage foreclosure http://www.bankrate.com/finance/mortgages/a-foreclosure-takes-forever-here-s-why-1.aspx#ixzz180oiNHsY
Six hundred days. That's how long, on average, mortgage loans in the foreclosure process in New York have been delinquent. That's the longest average in the nation, but not by much, according to LPS Applied Analytics, in Jacksonville, Fla. Loans in foreclosure in Florida, New Jersey, Hawaii and Maine have been delinquent more than 500 days, on average, while home loans in California and Nevada have been delinquent 461 and 427 days, respectively. In the two speediest states, Nebraska and Wyoming, loans in the foreclosure process are delinquent by an average of 358 days.
· Servicers' philosophies and directives are "constantly in flux,". One may need to raise cash to meet regulatory guidelines, while another may have too much inventory of unsold real estate on its books. Staid corporate cultures and high staff turnover contribute to slow decision-making.
· Servicers don't want to take on the legal and financial responsibilities of owning more homes. As soon as the foreclosure is completed, the lender "immediately assumes liability and carrying costs,". Examples of such costs include property taxes, casualty insurance, repairs and maintenance, and homeowner association dues.
Read more: What delays a mortgage foreclosure http://www.bankrate.com/finance/mortgages/a-foreclosure-takes-forever-here-s-why-1.aspx#ixzz180oiNHsY
Six hundred days. That's how long, on average, mortgage loans in the foreclosure process in New York have been delinquent. That's the longest average in the nation, but not by much, according to LPS Applied Analytics, in Jacksonville, Fla. Loans in foreclosure in Florida, New Jersey, Hawaii and Maine have been delinquent more than 500 days, on average, while home loans in California and Nevada have been delinquent 461 and 427 days, respectively. In the two speediest states, Nebraska and Wyoming, loans in the foreclosure process are delinquent by an average of 358 days.
Subscribe to:
Posts (Atom)