Freddie Mac increases allowable foreclosure timeline to 300 days

muzie_IHB

muzie_IHB

New member
<a href="http://www.housingwire.com/2008/07/31/freddie-mac-pushes-out-foreclosure-timelines/">Freddie Mac Pushes Out Foreclosure Timelines</a>



This is getting... disgusting. I can't believe it myself.



People who can't afford the home they live in will now get a whopping 10 MONTHS of free rent from the date of their last payment. Around California that works out to, what, an easy 30 G or so of free money? Meanwhile a lot of people are dutifully paying our rents, saving our downpayments, and paying our taxes.



The way this is going this will be just like the Japan crisis... As they keep putting up measures to save the bad loans I could see home prices taking 10 years before they find a bottom.
 
<a href="http://calculatedrisk.blogspot.com/2008/08/freddie-mac-foreclosure-timelines.html">You might want to read Tanta's eloquent rant so that you won't be disgusted</a>. It really doesn't change much, especially here in Cali. Then I suggest you check out Fannie's and Freddie's website and check out the REO properties for sale in OC so you can see how small of a percentage of foreclosures they are dealing with here. I understand why you would be disgusted, but you need to know what the real impact this will have before you do. In fact, I hope this makes you feel a bit better about it.



<em>Since TN had the shortest timeline, I think we can conclude that of the 21 states that got an increase to 300 days, TN got the biggest increase. California, for instance, per Crews and Cutts had a "statutory" total timeline of 266 days and an average total, again as of last year, of 268 days. Freddie's new timeline for CA is 300 days. Given that it is possible that the average has increased markedly since 2007 with record numbers of foreclosures, it seems possible to me that CA's actual average as of mid-2008 is now pretty darned close to 300 days, or even more than that. This provides some context for how "whopping" the increase in the allowable timeframe for CA is.



So now we can think about why it might be that Freddie decided to increase the timelines in the fast-foreclosure states. Obviously, the main rationale is to allow servicers to continue to make workout efforts during the FC process, which will in the nature of things increase the time a loan spends in the FC process, without penalizing them for failing to meet Freddie's standards.</em>
 
You must log in or register to reply here.
Back
Top