Luxury Homeowners In U.S. Use Short Sales As Defaults Rise
12/17/09
Homeowners with mortgages of more than $1 million are defaulting at almost twice the U.S. rate and some are turning to so-called short sales to unload properties as stock-market losses and pay cuts squeeze wealthy borrowers.
"The rich aren't as rich as they used to be," said Alex Rodriguez, a Miami real estate agent with JM Group USA Inc., whose listings include a $2.9 million property marketed as a short sale because the price is less than the mortgage, leaving the bank with a loss.
See IML Real Estate's most recent short sale approval. A loan balance of $2.7 million with Chase Home Finance settled for $1.8 million with NO deficiency judgment & NO promissory note. Click Here.
Homeowners Often Re- jected Under Obama Plan
12/17/09
Ten months after the Obama administration began pressing lenders to do more to prevent foreclosures, many struggling homeowners are holding up their end of the bargain but still find themselves rejected, and some are even having their homes sold out form under them without notice.
These borrowers, rich and poor, completed trial modifications of their distressed mortgage, made all payments, only to learn that they won't get help after all.
Nearly 650,000 Are Long-
Term Jobless
12/14/09
Californians who lose their jobs continue to be out of work longer, with 646,000 in October unemployed more than six months, according to the state Employ- ment Development Department data.
Typically the newly unemployed- those out of work less than five weeks- make up the largest pool of the jobless, but the length and depth of this recession has turned the usual experience upside down.
Report Says Foreclosure Crisis Worse Than Ever
12/07/09
The Mortgage Bankers Association (MBA), has reported that record number of loans- 1 in 7 - is delinquent, up from 1 in 10 a year ago. The numbers also show that 1 in 22 families in the U.S. is in the process of losing their home, up from 1 in 34 a year ago.
Based on those figures the country is on track for 2.9 million foreclosure starts in this year alone.
Hope Now Says Mortgage Modifications On The Rise
12/03/09
This year through October, mortgage servicers have provided 2.65 million modifications and repayment plans to homeowners, according to Hope Now. There have been 650,000 trial mod- ifications implemented through the government's program, but only about 1,700 permanent modifications as of early September, the latest figures made public.
Treasury officials say they prefer to see homeowners helped through the government program because it is focused on reducing monthly mortgage payments. Other mortgage modifications may tack on late fees or other costs, adding to the overall debt burden and even raising monthly payments for borrowers.
Read more from USA Today
FHA To Tighten Home Loan Guidelines
12/02/09
The Washington Post reports Housing and Urban Development Secretary Shaun Donovan will tell the House Financial Services Committee that the agency wants to increase the up-front cash paid by borrowers, raise the minimum credit scores for borrowers, and limit how much money sellers can kick in, including paying closing costs or giving free upgrades.
The proposals for tighter standards come as the FHA handles a much larger share of the mortgage market than in the past, and more of it's loans go bad. As we explained, FHA loan volume has quadrupled since 2006, and a rising number of defaults has prompted fears the agency will be the next in line for a government bailout.
