Beyond The Headlines

By
Real Estate Agent with Keller Williams Realty 01751261

Patrick Canavan

 

The Mercury News
Bankrupt homeowners shed second mortgages Some struggling homeowners are using a little known, but increasingly popular, provision of the bankruptcy code to eliminate second mortgages and avoid foreclosure.

MAKING SENSE OF THE STORY

Bankruptcy laws prevent homeowners from eliminating the debt of a first mortgage if they plan to stay in their home. But second mortgages are treated differently. Second mortgages can be
declared unsecured debt when there is no equity to cover them.

When that happens in a personal bankruptcy proceeding, the second mortgage is put on hold and no payments are required while the homeowner completes a repayment plan for other debts,
which typically takes three to five years. At that point, the second mortgage is eliminated.

While this strategy has gained in popularity among homeowners, mortgage bankers are not in favor of the practice, and have called it "a troubling phenomenon." However, there is little the
mortgage industry can do, aside from seeking to change the law, which could be difficult given the current partisan lineup in Washington.

Read the full story
http://www.mercurynews.com/real-estate/ci_18011666

 

Patrick Canavan

 

In Other News...
CNNMoney

Obama: Homeowners need more help President Obama said that struggling homeowners need even more help from the banks, in a CBS town hall that aired Thursday.

Read the full story
http://money.cnn.com/2011/05/12/news/economy/obama_housing/index.htm?iid=HP_LN

Los Angeles Times
Good-faith estimate disclosures ineffective in helping consumers shop for mortgages A survey finds that most home buyers and refinancers ignore the federally mandated disclosures, which
enable them to compare rates and terms for home loans.

Read the full story
http://lat.ms/l6g8be

Sacramento Bee
Home prices continue to slide in March both nationwide and across the region, according to figures by CoreLogic.

Read the full story
http://www.sacbee.com/2011/05/10/3616338/sacramento-area-home-prices-continue.html

San Francisco Chronicle
Homeowners who battled banks share success stories of homeowners who feel mistreated by their banks are commonplace these days. Some homeowners actually do get workable solutions, most commonly loan modifications to reduce their payments.

Read the full story
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/05/08/BUU31JAUHB.DTL

 

Patrick Canavan

 

Sacramento Bee
California once again ranks as one of worst states for mortgage fraud for the fifth year in a row, California ranks as one of the worst states for mortgage fraud - coming in at number three on the list of the worst states for 2010 behind New York and Florida, according to a report the LexisNexis Mortgage Asset Research Institute released this week.

Read the full story
http://www.sacbee.com/2011/05/09/3613296/california-once-again-ranks-as.html

SmartMoney
For second home purchases, cash is now king though investment properties have struggled in the down economy, real estate agents in destinations like Palm Springs and Palm Beach are starting to see bursts of activity again, with a common thread in many second-home markets: Cash is king.

Read the full story
http://www.smartmoney.com/personal-finance/real-estate/for-2nd-home-purchases-cash-is-now-king-1304539128506/

Los Angeles Times
BofA to open more outreach centers for delinquent homeowners Bank of America plans to triple the number of its assistance offices for homeowners in trouble on their mortgages, including adding seven of the new outreach centers in California.

Read the full story
http://latimesblogs.latimes.com/money_co/2011/05/bofa-to-open-more-outreach-centers-for-delinquenthomeowners.html

The New York Times
Dealing with higher costs of FHA loans the increased cost of FHA mortgages has shifted the math a bit for would-be borrowers. A home buyer with a down payment of less than 20 percent generally has to pay up in some other way to ensure that lenders are protected against default.

Read the full story
http://www.nytimes.com/2011/05/08/realestate/08mort.html?_r=1&ref=realestate

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