FHA: Foreclosure One Year Ago? No Problem!

I received tips from two different people in the last few days about a recent change in FHA underwriting standards announced in a letter titled “Back to Work – Extenuating Circumstances” Quoting from the letter: As a result of the recent recession many borrowers who experienced unemployment or other severe reductions in income, were unable […]

Short Sales: What happens when the seller’s lender doesn’t provide a forgiveness letter for the deficiency?

A word from The Tim: This post is from long-time Seattle Bubble participant Tim Kane (a.k.a. “S-Crow”). With short sales becoming more common every month in the Seattle area, I think Tim has struck on an interesting topic that not many other people are talking about. We already know what a hassle short sales can […]

More on the Possible Mastro Bankruptcy

Kristen Grind over at the Puget Sound Business Journal had another great article about the unfolding mess with local developer Mike Mastro: Rival banks battle over Mastro bankruptcy A legal battle between rival creditor banks over developer Michael Mastro Sr.’s real estate holdings is breaking out in federal bankruptcy court — a dispute that affects […]

Cramdowns Rejected by Senate, Appraisals Insulated from Banks

Two good news stories on the national front that are worth sharing this morning. Story 1: Senate Defeats Mortgage ‘Cram-Down’ as Democrats Balk The U.S. Senate rejected a measure that would let bankruptcy judges cut mortgage terms to help borrowers avoid foreclosure, a victory for banks and credit unions that said the legislation would increase […]

Rapid Rise in WA Bankruptcies

According to the Seattle Times, Washington State ranked 12th in the nation—up from 27th last year—for average monthly growth in bankruptcy filings between 2007 and 2008, with bankruptcy filings up 40% year-over-year. How is this related to real estate? You can probably guess… Across the state, declining home values and tighter credit have added a […]