Foreclosure

Theoretical analysis conducted by the Leavey School of Business at Santa Clara University found that banks would suffer fewer defaults among modified mortgages if they would shorten the duration of the restructured loans, rather than lengthening as they tend to do, and if they would forgive part of the loan - a method many are unwilling to apply because of the accounting impact. The study concludes, however, that principal write-downs maximize a borrower's willingness to pay, thereby maximizing the loan's economic value to the lender.

Losses from defaults on commercial real estate loans maturing in the next few years could go as high as $300 billion, threatening to topple nearly 3,000 community banks nationwide, a federal watchdog group has concluded. Market analysis by the Congressional Oversight Panel, charged with keeping tabs on the government's Troubled Asset Relief Program (TARP), shows that none of the banks classified by federal guidelines as having a ""CRE Concentration"" are among the nation's largest holding companies.

With tumbling property values leaving nearly a quarter of borrowers owing more on their mortgage than the home is worth, some may find it tempting to walk away - either to get out from under the debt completely or to force the servicer's hand for a modification. This idea of ""strategic default"" has become a universal concern within the industry, but one New Jersey company says it has a plan to counter such calculated flights of exodus. According to the Loan Value Group LLC, it's time to pay current borrowers to stay that way.

Since its inception in August 2009, the National Association of Women REO Brokerages (NAWRB) has been seeking to launch a nonprofit program. That goal was realized this week with the official incorporation of the NAWRB Community Enhancement program. This nonprofit venture is dedicated to developing infrastructure for parks and community centers in neighborhoods strongly affected by the nation's growing foreclosure rate.

Following the recent enhancements to the federal government's HOPE for Homeowners (H4H) program, Wolters Kluwer Financial Services has updated its library of H4H mortgage documents and consumer education materials. HUD's enhanced program includes several provisions meant to increase lender and borrower participation, including reduced program fees, streamlined borrower certification requirements, and new underwriting guidelines.

As one of the nation's largest mortgage servicers, CitiMortgage is still contending with a deluge of foreclosures that just doesn't seem to be abating. The company is launching a new pilot initiative Friday that will allow distressed CitiMortgage borrowers to avoid foreclosure and remain in their homes for six months if they agree to sign over their property deeds. Citi will also provide relocation assistance to ease the transition to another residence.

The relentless wave of foreclosures that has swelled and battered the housing industry for a good three years seems to have retreated in January, but it's not enough to mean the storm has passed. New data released by RealtyTrac Thursday shows that foreclosure filings were reported on 315,716 U.S. properties during the month, a decrease of nearly 10 percent from December. It's a pattern we've already seen this time last year, and RealtyTrac says if history repeats itself, there will be another flood over the next few months.

Atlanta-based Chrisley Asset Managent, a full-service REO management company, announced Wednesday the integration of short sales and loan modification services to its clients, streamlining the process for lenders and borrowers while increasing overall efficiency with a low-cost and reliable solution.

Despite what seemed to be a flattening - and in some cases even a reversal - of home price declines last year, there are signs that the dreaded ""double dip"" is developing in as many as one in five markets, Zillow says. While residential values in some markets appear to have found their bottom, the company has observed prices in such large metros as Boston, Atlanta, and San Diego to have leveled or begun to decrease again after consecutive monthly increases - early signs of what could become a second period of prolonged declines.

Payment Gone, LLC, creators of Khafre Back Office, announced Wednesday the launch of its commercial loan modification software module. The company says this marks the introduction of the first commercial mortgage mod software on the market. The new module is designed to enable servicers to accurately capture and manage their clients' portfolio of commercial properties and to quickly analyze clients' complete financial picture.