NPN Investors Cause Foreclosures To Drop

A report by the Federal Housing Administration (FHA) reveals that two-thirds of distressed loans in HUD’s single-family sales program (SLFS) have been resolved by selling to investors with 42 percent of those loans avoiding foreclosure. Distressed or nonperforming (NPN or NPL) loans are about 28 months delinquent on average when purchased by investors.

Approximately 28 percent of the 104,000 loans, both resolved and unresolved, avoided foreclosure through one of the six ways: reperformance, forbearance, short sale, deed in lieu of foreclosure, paid in full, and short payoff. Short sales and deeds in lieu of foreclosure were the most common alternatives to foreclosure. Approximately 37 percent of the loans have been foreclosed upon, and 3 percent are being held as rentals. Still, one-third of the distressed loans remain in delinquency.

Read more:  http://www.dsnews.com/daily-dose/12-06-2016/sale-distressed-loans-decrease-foreclosures

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