Fitch Ratings believes the trend toward more short sales of distressed residential real estate loans in the U.S. is gaining momentum.
The Federal Housing Finance Agency's (FHFA) recent announcement government-sponsored enterprises (GSEs) will implement rules to expedite short sales should further drive activity. Expanded use of short sales could be positive for RMBS trusts, as this strategy could improve and shorten liquidations and lower loss severities.
On Tuesday, Lender Processing Services Inc. announced that the number of short sales exceeded the number of foreclosures for the first time in January. Fitch expects the increase in short sales to continue because of the potential benefits afforded to both lenders and borrowers. Some borrowers may prefer short sales because, though they cannot stay in the property, they often walk away with cash incentives from lenders and healthier credit reports unmarred by foreclosure. ......
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got the analysis from http://www.irealtytimes.com/articles/2345/20120419/fitch-short-sales-pos...
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a good point,isn't it?
Fitch Ratings believes the trend toward more short sales of distressed residential real estate loans in the U.S. is gaining momentum.
The Federal Housing Finance Agency's (FHFA) recent announcement government-sponsored enterprises (GSEs) will implement rules to expedite short sales should further drive activity. Expanded use of short sales could be positive for RMBS trusts, as this strategy could improve and shorten liquidations and lower loss severities.
On Tuesday, Lender Processing Services Inc. announced that the number of short sales exceeded the number of foreclosures for the first time in January. Fitch expects the increase in short sales to continue because of the potential benefits afforded to both lenders and borrowers. Some borrowers may prefer short sales because, though they cannot stay in the property, they often walk away with cash incentives from lenders and healthier credit reports unmarred by foreclosure. ......
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got the analysis from http://www.irealtytimes.com/articles/2345/20120419/fitch-short-sales-pos...
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a good point,isn't it?