The government is expected to announce up to $50 billion to directly address bad mortgages and millions of homeowners at risk of foreclosure. Roughly 10% of mortgages are in arrears, about 4 million loans, and roughly 7.5 million homeowners are under water. Let's say 10 million distress situations in total. The real number could be as high as 20 million. With $50 Bil that amounts to about as little as $2,500 per. Something tells me this is not going to cut it. But, it's a move in the right direction. - Paul
Lender options: Loan modification, short sale, or foreclosure
This is (should be) the order of preference to lenders for the purpose of minimizing losses. Sadly, the common experience is exactly the opposite: Lenders are slow and too demanding in responding to short sale requests. Loan modifications, ditto. And foreclosures will eventually happen automatically. This results in preventable lender losses and borrowers looking for an honorable solution are rebuffed (and in the absence of a loan modification also forced to abandon their homes). I recommend distressed borrowers pursue a short sale and loan modification simultaneously. Realtors are invited to refer their clients through my loan modification referral program.
This is (should be) the order of preference to lenders for the purpose of minimizing losses. Sadly, the common experience is exactly the opposite: Lenders are slow and too demanding in responding to short sale requests. Loan modifications, ditto. And foreclosures will eventually happen automatically. This results in preventable lender losses and borrowers looking for an honorable solution are rebuffed (and in the absence of a loan modification also forced to abandon their homes). I recommend distressed borrowers pursue a short sale and loan modification simultaneously. Realtors are invited to refer their clients through my loan modification referral program.
For the week ending Oct 30th the 30-year fixed averaged 6.46% with an average 0.7% fee, up from last week when it averaged 6.04%. Last year at this time, the 30-year fixed averaged 6.26%.
"Long-term mortgage rates followed long-term Treasury bond yields higher this week, pushing fixed-rate mortgages up to levels of two weeks ago," said Frank Nothaft, Freddie Mac vice president and chief economist. "The Federal Reserve's 0.50% cut in the discount rate and federal funds target rate on Wednesday is likely to keep short-term interest rates low; consequently, initial interest rates on ARMs, which tend to be set relative to other short-term rates, may remain near current levels.
Freddy Mac rate surveys. 1-3 week trend: Uncertain
Fed's Yellen says rates could reach Zero...
San Francisco Federal Reserve President Janet Yellen said the Fed could lower rates below 1%, and that they could reach as low as zero amid a weak economy. Read more.
San Francisco Federal Reserve President Janet Yellen said the Fed could lower rates below 1%, and that they could reach as low as zero amid a weak economy. Read more.
Housing plunge: The Fannie fix
"Two scapegoats in the mortgage mess, Fannie Mae and Freddie Mac, could play a key role in a housing revival". By Colin Barr, senior writer, NY Times. Read.
"Two scapegoats in the mortgage mess, Fannie Mae and Freddie Mac, could play a key role in a housing revival". By Colin Barr, senior writer, NY Times. Read.
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