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The marketplace has been exciting these last few weeks. Our view of the purchase and refinance market
is a slow but steady stream of activity. No immediate change is apparent. The good news is that as of the date of this
writing (October 23) the interest rates are creeping below six percent
(6.0%). Most of the industry insiders we
consult believe we need to see sustained rates below six for any significant
change to occur.
Foreclosures and the ability to stave off foreclosures
continue to be the hot topics. We are
getting an increase in phone calls seeking help in that arena. Should you need help or know of someone who
does, have them call our law firm. The
lenders are still inundated with requests for forbearance so the sooner one
gets started, the better. Here is a
checklist of what anyone trying to get relief from their lender needs:
1. A
hardship letter. The letter should spell
out why they have been unable to make payments, what amount would be feasible
to pay, and when the borrower would likely be able to get caught up, if
possible.
2. Current,
realistic schedule of monthly living expenses.
3. Any
information (appraisal, comps, etc.) as to current market value of property.
4. Last
year or 2 of tax returns.
5. If
the property is listed, who it’s with and at what price.
6. Current
pay stubs.
7. Letter
of authorization as to who the lender can talk to. Lenders won’t talk to
us as representatives without an
express letter of authorization.
As hard as we work on these forbearance cases, it takes time
to get a result. To understand the
complexity, one needs to understand that the loan you have on your house might
be serviced by one company, but the note has been split into 3 different
pieces, called tranches, to three different investors in three bonds. So the servicer of the loan must get approval
of the changes, in some cases from more than one investor.
Whether you use our services or not, if you fall behind CALL
THE LENDER. If you are not pro-active,
they will surely move to secure their position.
On a positive note, Business Week named Arlington VA,
Washington DC and Baltimore
as 3 of the 10 cities better situated to ride out a recession, due to proximity
to the Federal government, low jobless rates and strong local employers.
As always, we want to be your law firm and title
company. Call with questions or email me
at tee.tillman@colonytitle.com. | 
