Blog - The Source
Clear title, or “clean title,” refers to the rights someone has over a piece of property, and it’s an important part of most real estate transactions. Let’s say you’re an investor and you have a property in your rental pool that has been bought and sold three times in the last 30 years. You renovate the house and are ready to sell. Then you learn that the prior owner of the house is deceased and left the house to their three sons who can now legally lay claim to it. Other complicated legal issues can arise when property is held by a trust or some other form of legal entity. Obtaining clear title can become quite a quandary.
Although the real estate industry might be lagging behind current tech trends, there are some cutting-edge tech solutions that help improve efficiencies for REO servicers. For example, online marketplaces help enable prospective homeowners to search for properties and even make offers from their cell phones.
Clear title, or “clean title,” refers to the rights someone has over a piece of property, and it’s an important part of most real estate transactions. Let’s say you’re an investor and you have a property in your rental pool that has been bought and sold three times in the last 30 years.
Government shutdowns, wild swings of the stock market and changing interest rates—these harsh realities are causing anxiety for many Americans. In fact, a consumer confidence survey in January showed that more than half of Americans assume their personal finances will get worse in 2019 rather than better.
As the U.S. Department of Housing and Urban Development’s (HUD) expectations increase, so does the pressure on lenders to ensure properties are in conveyance condition prior to beginning the Claims Without Conveyance of Title (CWCOT) process. Property preservation is no easy feat for many servicers. Considering the fact that CWCOT timelines are constricting and discount rates are increasing at the same time HUD demands are also trending upward, it takes a true balancing act of priorities to keep properties up to code and under budget.
The comeback of private-label securitization has long been speculated, however it is now returning and being accepted into the marketplace. In the last couple of years, tougher restrictions and regulations imposed on financial institutions have made alternative mortgage solutions such as non-qualified mortgage (non-QM) lending more attractive.
The real estate industry is in a constant state of flux. Therefore, one of the most important decisions a lender can make is choosing a trustworthy valuations partner. Appraisal management companies (AMCs) can be crucial in facilitating real estate transactions, and lenders must be sure they are working with an AMC that has the resources, expertise and relationships to complete the process quickly and accurately. Below, we have listed four criteria that can put an AMC ahead of the pack.
In 2016, nearly one in five newly originated loans were Federal Housing Administration (FHA) loans. Although these loans led to an increase in home sales, they also comprised more than 34 percent of loans that were delinquent over 30 days, or nearly 8 million in outstanding FHA loans.
It’s a situation that is unfortunate but not uncommon: a homeowner so far behind on house payments that it’s impossible to get ahead. Rather than an appreciating asset, many property owners find that their property values are still less than their remaining mortgage balances even 10 years after the financial collapse.
Is a short sale the right answer for both the buyer and the seller?
It’s common today to receive phishing emails or phone calls from the “Social Security Administration” saying that the police will arrest you and revoke your citizenship if you don't pay the outstanding debt in the sum of $10,000 by credit card immediately. Those are easy enough -- you press the hang-up button and laugh it off. But new wire fraud schemes don't rely on your gullibility so much as the complexity of your processes and the lack of transparency in your organization.
In recent years, many types of lenders have shown an unprecedented interest in breaking into the construction loan market. Green Street Advisors estimates that U.S. originations by non-bank lenders rose by 40 percent in 2017 alone. Still, construction lending poses a unique set of risks that can leave lenders who are unfamiliar with this space dangerously exposed. Indeed, the rise of non-bank lenders and smaller banks is largely a reaction to the financing vacuum left by more tightly-regulated big banks after the 2008 financial crisis. Seizing the profit potential in construction loans depends on accessing the expert knowledge needed to create and execute a responsible lending policy.
The technology that blockchain brings to the table has the potential to affect a wide swath of homeowners, including two-thirds of Americans, many of whom are considering refinancing after the Fed lowered rates for the first time in nearly a decade.
Not only can blockchain better secure transactions, but it can also drive efficiency within the mortgage process. Here’s how.