The housing market has been heating up over the summer, with both pending and existing home sales posting their strongest showings of the year in July.
$25B Settlement May Offer Little Help
Only 5 percent of underwater homeowners are likely to qualify for mortgage principal reductions under the recent $25 billion foreclosure abuses settlement, an economist with the Brookings Institution has calculated.
Those 500,000 homeowners would see principal reductions averaging $20,000 each, based on the $10 billion of the settlement set aside for that purpose, according to recently published estimates by Ted Gayer, co-director of economics studies for the Brookings Institution. Even so, Gayer estimates that would eliminate only 30 percent of the equity deficit of the average underwater homeowner.
Fannie,Â Freddie borrowers not included
Other relief still available
Borrowers with home equity lines of credit (HELOCs) will face a growing risk of default over the next several years, as the bills come due on millions of such loans.
The 12-mile drive from Scarsdale, N.Y., to Greenwich, CT, is about 21 minutes, according to Google Maps.
Most consumers are aware of the three major credit reporting companies that generate the scores used in qualifying borrowers for loans. What they may not know is that Equifax, Experian and...
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