Mortgage Modifications Slow in First Quarter

The number of permanent mortgage modifications dropped by almost a third in the first quarter this year, according to an alliance of mortgage professionals today. Hope Now, a group consisting of mortgage serviciers, investors and non-profit counselors, reported that only about 207,000 struggling homeowners had their mortgage loans permanently changed in the first three months of 2012, down 31 percent from the 298,449 modified loans from the first quarter of 2011. Of the loans modified this Read more [...]

Younger Borrowers Turning to Reverse Mortgages

The average age is dropping for borrowers seeking reverse mortgages these days, according to a new study, signaling a generational shift in financial priorities. Reverse mortgages allow homeowners age 62 and older to get a loan based on the equity in their homes. They can then receive monthly payments, lines of credit or even a lump sum of cash. The advantage of this type of loan for seniors is that they can continue to live in their homes. When they leave the house (or die), the loan must then Read more [...]

Housing Bubble Speculators To Get Gov’t Mortgage Aid

The Obama Administration has decided to extend bailout funds to investors who purchased multiple homes during the recent housing bubble. Under newly updated terms of the Home Affordable Modification Program or HARP, in May landlords can start to qualify for modifications on up to four loans, a major change from the Administration's original aim to avoid offering aid to anyone who helped fuel the housing crash. About 700,000 of these investors will now be eligible for lower interest rates, longer Read more [...]

Reverse Mortgage Market: The New Subprime Crisis?

With the baby boomer generation rapidly aging into retirement, reverse mortgages are becoming more and more popular. These loans allow seniors to basically cash out the equity in their homes permanently as a source of retirement income. Borrowers must be at least 62 years of age with a paid-off or almost paid-off mortgage. The homeowner receives a lump sum of money or monthly cash advances or even a line of credit. The loan is due upon the death of the borrower, or if he moves or sells his house. Yet Read more [...]

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on December 13th 2010 in Mortgage News

Could A Mortgage Rate Hike Spur Sales?

An article on the Wall Street Journal website today made the bold assertion that an increase in mortgage interest rates may actually stir up some activity in the housing market. Interest rates have been at all-time record lows for a month now, with the 30-year fixed rate loan averaging down to 4.32 percent last week, according to mortgage giant Freddie Mac. And for a myriad of reason, these low rates have not garnered much change in home purchases or mortgage refinance applications. For example, Read more [...]

Mortgage Modification Program at 50 Percent Drop Out Rate – Does That Equal Failure?

The latest figures from the Treasury Department are reporting that almost half of all participating homeowners dropped out of the government's Home Affordable Modification Program (HAMP) through July. The program, begun in April 2009 to stem the tide of nationwide foreclosures, cut 48.1 percent, or 100,114 of it 1.3 million homeowners last month because they failed to meet income documentation requirements. In June, the failed number was also large, but not quite as dramatic - 41.2 percent of Read more [...]

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on August 20th 2010 in Mortgage News

Foreclosure Now a ‘Way of Life’ for Many

The New York Times posted an article today about the rising number of Americans who have gone in to foreclosure, stopped paying their mortgages and just keep living in their homes until the banks finally kick them out. While some states like California and Texas allow lenders to go after borrowers outside of the court system, many states rely on their judicial systems to process the mounds of foreclosures now piling up. And the sheer volume of such cases means that homeowners can sometimes stay Read more [...]

Financial Legislation Includes Mortgage Industry Punishments

The legislation currently before both houses of the U.S. Congress is intended to be a major overhaul of the financial industry, but it also includes some important new restrictions for the mortgage lending market, often blamed for the downfall of the U.S. economy in 2006. "It would have been unthinkable to get through financial reform without addressing the mortgage market because this is why were are in the mess we're in," said Julia Gordon, senior policy counsel at the Center for Responsible Read more [...]

Homeowners Still Prefer to Keep Their Promises

A new survey out from real estate data trackers Trulia.com and RealtyTrac shows that the majority of American homeowners have a desire to hold on to their homes and make good on their financial promises, even if they go underwater on their mortgages. The study found that 59 percent of borrowers said they would not consider walking away from their mortgages, even if they owed more on their home than it was worth. Only 39 percent said they would consider “strategic default,” stopping payments Read more [...]

Maybe He Should Have Tried a Loan Modification…

A 73-year-old man from Tampa, Florida was arrested last week for robbing three different banks, all in an attempt he says, to pay his mortgage. While I would never excuse the crime, it is actually quite a heart-breaking tale. This elderly man, James Bruce, who is still working, falls on hard times with his businesses. After realizing he’s probably going to lose his house if he doesn’t do something drastic, Bruce decides to take out some “repayable loans” as he called them to make his mortgage Read more [...]

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on February 15th 2010 in Mortgage News