The Real Deal New York

Program seeks to speed up backlog of foreclosures

Trustees would conduct short sales while homes are still tied up in bankruptcy

September 29, 2014 06:00PM

Underwater mortgages

Underwater mortgages

A new pilot program could help Freddie Mac, Fannie Mae and large lenders expedite the sale of underwater homes currently mired in the bankruptcy process.

U.S. bankruptcy trustees are aiming to significantly reduce the time it takes to deal with distressed homes by essentially conducting short sales during the bankruptcy process, rather than going through with foreclosure, the Daily Business Review reported. The program is meant to more quickly process homes that have been tied up for years in Chapter 7 proceedings in state courts, which have prevented lenders from repossessing properties, according to the news site.

Lenders were initially opposed to the idea, in part because they didn’t want to take a loss on properties that were once high-value investments, Kenneth Welt, a trustee and advocate for the program told the Business Review.

“But when they started looking at their spreadsheets and seeing years of no income and properties losing value, they realized this now makes sense,” said Welt. [Daily Business Review]Tom DiChristopher

  • Bob4949

    Selling homes they forged the mortgage notes on. Forgery and fake endorsements = Fannie’s , BOA, and corrupt “substitute trustee” lawyers favorite M.O. to steal homes.

    • Victoria Battaglini

      True.

  • Victoria Battaglini

    Criminals who have effected RICO crime on citizen-homebuyers must not be rewarded with the racketeered asset, NOR, should the citizen/taxpayer and insurance investor Be FORCED TO PAY A MARGIN BETWEEN FRAUD ESTABLISHED VALUATION, AND TRUE MARKET VALUE, UPON THEFT OF THE ASSET
    This is exactly why the very crininals are buying up fraudsters like Zillow, and every other real estate estimating company: TO CONTINUE THE FRAUD ESTABLISHED INFLATED PRICING, NEVER EVER SUPPORTED BY TRUE BUYING POWER, and backed by innocent citizen depositors and taxpayers.

    • Victoria Battaglini

      This is RICO crime defined. Force the criminals to return the asset to true market value, not valuation based on Fed MONEYPUMPING of citizen originated debt, into untaxed intl corporate capture and rackets. Funds for such must be drawn on the criminal interests and not deferred again, through tax exemption and bailouts, on the citizen as entity.

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