All Foreclosures to Require Servicing?

Bloomberg has an article explaining how the Obama Administration may ban all residential foreclosures unless lenders and their servicers make maximum efforts to verify that the mortgage facing foreclosure has been screened and rejected as eligible for modification under the federal government mortgage modification program called HAMP.

To date,  lenders have been able  to commence foreclosure actions even if a mortgage has not been submitted for HAMP eligibility. Further, foreclosures can currently proceed while borrowers are under review for HAMP eligibility or even participating in a trial modification.

The affect of this proposal will be to reduce the supply of REO on the market and increase REO prices even further.

February 23, 2010 – Bloomberg.com

Amidst a Sea of Delinquent Mortgages

The Wall Street Journal highlights the paradox of a very tight REO market amidst a sea of delinquent mortgages.  NREV’s ability to purchase large numbers of quality REO single family properties on a negotiated basis with plenty of time to perform proper due diligence and to accept only properties that make financial sense is unique in a market characterized by excess demand, where buyers are often driven to purchase these assets on a “sight-unseen basis”.  This is one more instance where NREV has found a way to apply best real estate business practices in a challenging real estate market.

February 23, 2010 - Wall Street Journal