Monday, December 21, 2009

Commercial Loan Mod Consulting Opportunity Webinar

Commercial Loan Mod Consulting Opportunity Webinar: Tuesday, 12/22/09 9:00 AM PST register here http://www.commercialmodificationleads.com/

This is the first  webinar offered by CommercialModification.com to present information to potential branch affiliates.  Register to receive an invitation for this or future webinars.

CMBS Market Thaws As Defaults Increase

Government intervention appears to have a positive affect in reviving the moribund CMBS market which died following the sub-prime crisis in 2007. The federal reserve has been buying CMBS's as well as providing fresh capital to banks through the TALF program which allows banks to put up qualified CMBS and CDO's as security for new loans at very loan rates. The banks can then use these funds to issue new securitized loans to fund purchase and refinance of commercial loans.

Recent private CMBS offerings have had positive receptions in the market including a recent offering by JPMorgan in which Inland Western Retail Real Estate Trust Inc., an Oak Brook, Ill.-based non-listed REIT, closed a $625 million loan.

Wells Fargo, Goldman Sachs, Bank of America and JP Morgan, all have already announced their involvement in new CMBS deals.

Friday, December 11, 2009

Peter Schiff on Housing Video Blog

Peter Schiff shows his economic brilliance and foresight in this 10 minute video blog. Mr Schiff, who is running for the US Senate seat occupied by Christopher Dodd was one a few people who correctly foresaw the housing bubble. His common sense approach and plain speak make him a likable fellow who is still mocked and ignored by pundits and press for his criticism of mainstream (Obamanomic)thinking.

In this video, Mr. Schiff gives his analysis of the days financial events and talks about the bond market, debt ceiling and a recent WSJ article about people walking away from their homes.

Wednesday, December 9, 2009

House Flipping Makes A Comeback

Check out this video from tonight's Kudlow Report.

The experts make the case that you need to be an expert or avail the services of one to make money in foreclosures and short sales.

They make the point that you cannot enter the property and do an inspectin to see if the property has been trashed.

The leads offered by www.shortsaleleads.org are contacts with actual homeowners that are interested in doing a short sale.

Monday, December 7, 2009

Mortgage Trade Group Reports Increased Commercial Delinquencies

Commercial real estate loans showed continued increases in the rates of delinquencies, the  Mortgage Bankers Association (MBA) reported in a recent survey.

MBA's Commercial/Multifamily Delinquency Report keeps records on delinquencies of commercial real estate loans.


Last quarter borrowers of commercial mortgage backed securities (CMBS) loans topped 4 percent during the quarter.  They also reported that life insurance companies who own commercial loans had loans that fell behind at an increase by a 1/4 of a percent and the 60+ day rate on multifamily loans in Fannie Mae's portfolio increased by 0.11 percentage points to 0.62 percent. 

The increase in delinquency rates is expected to continue throughout 2010 and peaking in 2011.  There is about $300 billion in negative equity overhang that needs be refinanced in 2010 and 2011.  Much of these loans will end up in foreclosure or sold as short sales or modified to either extend the loan maturity or reduce the principal balance.

The government recently announced guidance for prudent commercial loan work outs.  This policy change, while beneficial for some borrowers only serves to extend the problem as banks are unwilling to write down loan balances when their government handlers and owners let them keep the loans on the books at full value in the absence of mark-to-market accounting.

Tuesday, December 1, 2009

Treasury Issues Guidance On Short Sales

The Treasury Department has issued long-awaited guidance to streamline short sales.

Under "The Home Affordable Foreclosure Alternatives Program" the Treasury will be issuing checks to homeowners for $1500 and $1000 to lenders when they execute a short sale agreement.  Second lien holders will get up to $3000 to release their interest in a property. The lender must forgive the unpaid balance on the loan. 

Under the new guidelines, lenders have only 10 days to approve or disapprove the transaction.

Here is a link to the Government guidance. https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf