2011 midyear residential market update

Mikell RichardsAccount Executive, First Federal

President, Mortgage Lenders Association of Greater Charleston

2011

MLAGC

Realtor Market Update

The future of mortgage loan applications?

• CTAR and MLAGC working together to help our customers buy a home

Judge Mikell ScarboroughMaster-in-Equity, Charleston County

January February March April May June July0

102030405060708090

100

89 92 71 67 55 24 3913 8 22 11 11 13 9

Plaintiff

Third Party

Master-in-Equity Foreclosure Sales For 2011

*Year to Date: 524 Sales

Foreclosure Filings In Charleston County

2007 2008 2009 2010 20110

500

1000

1500

2000

2500

7341447

2244 2365

1476*

*As of July 29, 2011, approximately 1,476 foreclosure cases have been filed in Charleston County in 2011. Of those cases, 1,110 have been referred to the Master.

Yearly Earnings To The County

2007 2008 2009 2010 2011$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

404,890.28486,374.83

771,488.77

1,774,504.30

2,196,427.33

Administrative Order 2011-05-02-01

• Since the imposition of HMP in 2009, the number of foreclosure actions in South Carolina has continued to increase.

• Breakdowns are largely the result of difficulty in communication between lender-servicers and debtors, and the fact that foreclosure actions are proceeding to conclusion without regard to ongoing loss mitigation efforts by the parties.

“Owner Occupied Dwelling”

• An “Owner-Occupied Dwelling” is defined as mortgaged real property that is the principal residence of any mortgagor.

• To determine whether property is “Owner-Occupied” the Court looks for a 4% tax assessment as well as where the summons, complaint, and lis pendens were served on the Defendant.

Actions Pending on May 9, 2011• The Mortgagee shall, through its attorney of record, filed with the court

and serve upon every Mortgagor a notice of the Mortgagor’s right to foreclosure intervention.

• “Foreclosure Intervention” shall include any policy, process, or procedure employed by a Mortgagee for the purpose of seeking a resolution of a foreclosure action by loan modification or other means of loss mitigation.

• All proceedings in the foreclosure action shall be stayed until completion of such foreclosure intervention.

• Once the Mortgagor receives notice of its right to foreclosure intervention Mortgagor has 30 days to answer and serve Mortgagee.

No foreclosure hearing or sale may be held in the foreclosure action until the Mortgagee’s attorney certifies the following: • A) Service of a Notice of the right to foreclosure

intervention;

• B) The Mortgagee has received and examined all documents required to be submitted to evaluate eligibility for foreclosure intervention;

• C) A full and fair opportunity to submit any information pertaining to the loan or personal circumstances for consideration;

• D) If, after completion of the foreclosure intervention process, the Mortgagor does not qualify for loan modification or other means of loss mitigation, in accordance with any standards, rules, or guidelines applicable to the mortgage loan, and the parties have been unable to reach any other agreement concerning the foreclosure process; and

• E) Notice of the denial of loan modification (or other means of loss mitigation) has been served on the Mortgagor by mailing such notice to all known addresses of the Mortgagor; provided, that such notice shall also state that the Mortgagor has 30 days to file and serve an answer to the summons and complaint.

Actions Filed After May 9, 2011

• Mortgagee’s attorney shall serve on the Mortgagor, along with the summons and complaint, a notice of the Mortgagor’s right to foreclosure intervention.

• No foreclosure hearing may be held in the foreclosure action until the Mortgagee’s attorney certifies that the Mortgagee has complied with the requirements outlined in steps A-E.