Homeowners Who Walkaway Will Feel Pain
- By:
- MortgageLoan.com | April 14, 2008
Mortgage Lenders, Fannie Mae and Freddie Mac have issued a warning to persons looking to join the growing number of struggling homeowners to "walkaway" from their mortgages.
Guidelines issued by the government backed lenders sent out new guidelines to lenders intended for "walkaways" and other foreclosures situations. Fannie will not allow foreclosed borrowers to avail new mortgage for five years except for "documented extenuating circumstances." In such cases, the ban is for three years, the report added.
The trend which is prevalent in former housing boom markets such as California, Nevada and Florida sees homeowners, who can no longer make payments, cease their mortgage expenditure and months later send the house keys back to their lender.
The trend has been spurred on by websites claiming to be able to cut the hassles of bailing out of a mortgage. Some online companies have even gone so far as to state they could help troubled homeowners improve their FICO scores.
According to Fannie Mae and Freddie Mac, borrowers who foreclose as a result of genuine hardships are likely to be more sympathetic a few years down the road, but those who walk away, will have a hard time getting new home loans for five to seven years.
Bankruptcy Reform Back on the Table
- By:
- Bill Rice - MortgageLoan.com | November 21, 2008
One of the earliest ideas for helping homeowners facing mounting mortgage debt and potential foreclosure on their home was to reform bankruptcy laws. The concept is now officially back on the table, introduced into the Congressional lame-duck session by Senator Richard Durbin (D-IL).
TARP is Closed for Relief Until Further Notice
- By:
- Bill Rice - MortgageLoan.com | November 20, 2008
Remember what a crisis the $700 billion mortgage market bailout was--the very existence of the American financial order hung in the balance.
Fixing the Housing Market, Lots of Ideas...Any Answers?
- By:
- Bill Rice - MortgageLoan.com | November 19, 2008
Almost a year into the dawning of the housing crisis (many chronologist are setting that around the January 2008 crumbling of Countrywide) ideas continue to flow, but few seem to be the answer. In fact, this seems to be the growing consensus--there is no silver bullet.
G-20 Lots of Motion, Will There Be Action?
- By:
- Bill Rice - MortgageLoan.com | November 18, 2008
The 20 most powerful industrial nations, and now the caretakers of an unprecedented global financial crisis, assembled in Washington DC over the weekend. Their mandate was broad and daunting--stabilize world markets.
FDIC Challenges Treasury with New Loan Modification Proposal
- By:
- Bill Rice - MortgageLoan.com | November 17, 2008
On the heels of the Treasury and Federal Housing Finance Agency's (FHFA) loan modification plan for Fannie Mae and Freddie Mac, the FDIC releases their own proposal. In this unprecedented, unilateral, and aggressive move by a Federal agency the FDIC is essential fighting a very public political battle directly with the Treasury and the current Administration.
Mortgage Rates Drop for Second Straight Week
- By:
- Bill Rice - MortgageLoan.com | November 14, 2008
Another week of dismal economic data have again pushed down mortgage rates. Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.14 percent, down from 6.20 percent last week. This demonstrates a steep decline from 6.46 percent two weeks prior.
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