Based on Deutsche Bank analysis, 14 million U.S. homeowners had negative equity at the end of the first quarter 2009, that's about 27% of owners with a mortgage.
According to a story yesterday in MarketWatch Deutsche Bank estimates that 25 million homeowners, or 48% of those with mortgages, will owe more on the loan than the house is worth by the first quarter of 2011.
This summer the Obama administration has announced new rules and procedures that change the way loan modification, short sales, deeds-in-lieu-of-foreclosure, and foreclosures are handled by the banks and their servicers.
These new rules are just beginning to be implemented. In fact earlier this week the Treasury publicly reprimanded a handful of banks for their lack of action in implementing some aspects of the plan. The government is also having Freddie Mac develop a "second look" process to audit MHA
modification applications that have been declined on an ongoing basis.
Also, day before yesterday, Treasury published the first of its monthly Servicer Performance Reports, which track loan modification activity at the individual servicer level.
Bottom line?
Forget what you know. The rules are changing and its a whole new ball game when it comes short sales. We'll be covering the New Rules for Short Sale Success in our webinar for members on August 20th.
Invitations went out by email today. If you are a member and didn't receive one, drop us a line.
