01-02-2010, 10:21 AM
I predict that the wave of foreclosures will continue as the large number of people who have been caught up in the loan modification "hope" program are ultimately denied. Unless the program is changed so that banks/Fannie Mae etc. can't decline based on NPV test. Very few modifications have been done in comparison to what was envisioned when HAMP was announced, but many lenders took money to participate and have been delaying foreclosure while processing the applications. They are starting to get through the pile though, so the grace period is drawing to a close.
Because properties in Hawai'i hold more value than many declining markets, Fannie Mae will opt to foreclose more here rather than modify. In turn, that will make it difficult for non-distressed properties to be sold for a reasonable value, which will make it hard for people to make life changes who are tied to owning their primary residences.
Because properties in Hawai'i hold more value than many declining markets, Fannie Mae will opt to foreclose more here rather than modify. In turn, that will make it difficult for non-distressed properties to be sold for a reasonable value, which will make it hard for people to make life changes who are tied to owning their primary residences.