It will involve banks and investors reworking tens of thousands of troubled mortgages and waiving missed payments. Repairing the housing market in Puerto Rico will take more than rebuilding storm-damaged homes and the electrical grid. Many lenders also have agreed to waive missed payments during the moratorium. Residents won a reprieve when the federal government imposed a temporary moratorium on foreclosures, which stops banks and investors that bought mortgages at cut-rate prices from evicting delinquent borrowers or starting new foreclosures. More than 100,000 people are believed to have left to go live with friends and family on the mainland.
They are literally still picking up the pieces, struggling to live without electricity or trying to get insurance companies to pay claims to repair their homes. “Thousands have lost their jobs, thousands of small business have closed, and thousands more have left the country.”Īt the moment, dealing with a mortgage lender about a missed payment may be a distant concern for many of the 3.4 million people in Puerto Rico. “If there is no income, the people cannot make payments,” said Ricardo Ramos-González, coordinator of a consumer legal aid clinic at the University of Puerto Rico School of Law. And there is no prospect of the problem’s solving itself or quickly. Puerto Rico’s 35 percent foreclosure and delinquency rate is more than double the 14.4 percent national rate during the depths of the housing implosion in January 2010. Some 90,000 borrowers became delinquent as a consequence of Hurricane Maria, according to Black Knight Inc., a data firm formerly known as Black Knight Financial Services. Tens of thousands have not made payments for months.
If the current numbers hold, Puerto Rico is headed for a foreclosure epidemic that could rival what happened in Detroit, where abandoned homes became almost as plentiful as occupied ones.Ībout one-third of the island’s 425,000 homeowners are behind on their mortgage payments to banks and Wall Street firms that previously bought up distressed mortgages. Now Puerto Rico is bracing for another blow: a housing meltdown that could far surpass the worst of the foreclosure crisis that devastated Phoenix, Las Vegas, Southern California and South Florida in the past decade. Then, in September, Hurricane Maria, a powerful Category 4 storm, shredded buildings, wrecked the electrical power grid and possibly led to more than 1,000 deaths. Served by utilities that meet community standards (see B4-1.Puerto Rico has had an awful decade - and it’s about to get worse.įirst came a brutal 10-year recession and financial crisis that drove businesses from this island and left 44 percent of the population impoverished.
Readily accessible by roads that meet local standards (see B4-1.3-04, Site Section of the Appraisal Report) The highest and best use of the property as improved (or as proposed per plans and specifications), and the use of the property must be legal or legal non-conforming use (see B4-1.3-04, Site Section of the Appraisal Report)
Safe, sound, and structurally secure (see B4-1.3-06, Property Condition and Quality of Construction of the Improvements) Īdequately insured per Fannie Mae guidelines for property and flood insurance (see B7-3, Property and Flood Insurance)
#FANNIE MAE FORECLOSURES PUERTO RICO CODE#
Secured by an interest in real property within the meaning of the Internal Revenue Code as such term is defined in 26 C.F.R. Residential in nature as defined by the characteristics of the property and surrounding market area (see B4-1.3-03, Neighborhood Section of the Appraisal Report)
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