You fell behind on your mortgage payments and lost your home to foreclosure.That's the end of this financial nightmare, right? Not quite: Something called a deficiency judgment could come back and haunt you.
Small lenders are complaining about the new qualified mortgage (QM) rules that took effect last week, saying they put an undue burden on them and limit their ability to offer certain types of mortgages their customers demand.
New mortgage rules taking effect next month won't change anything on homeowner's current mortgages and it won't prevent borrowers from taking out home loans with debt-to-income ratios above 43 percent, despite widespread claims to the contrary.
Homeowners whose mortgage debt is reduced through a loan modification or short sale could get hit with a tax bill if Congress doesn't act to extend a special exemption due to expire at the end of the year.
Housing and mortgage industry trade groups are banding together to press the Federal Housing Finance Agency (FHFA) to hold off on its plans to reduce the size of mortgages that can be approved by Fannie Mae and Freddie Mac.