Lenders Put a Freeze on Foreclosures
Six of the nation's largest mortgage lenders, in a joint effort to cool the raging foreclosure crisis, have agreed to temporarily stop foreclosure proceedings on homeowners who have fallen seriously behind in their house payments.
Under a program unveiled recently, legal efforts to oust seriously delinquent borrowers from their homes will be postponed for 30 days while lenders and borrowers try to work out payment options.
The effort, known as Project Lifeline, will not be confined to borrowers with adjustable rate mortgages. So-called ARMs have recorded the highest rates of delinquencies, even as default for loans of all types have risen dramatically over the past couple of years.
Under the program, homeowners 90 days or more behind in their mortgages will get a letter from their lenders asking them to call. Borrowers will be asked if they want to stay in their homes; if so, they will be offered financial counseling.
Loan modifications are not automatically granted. Borrowers will have to provide up-to-date information about their wages and debts. At that point, the lenders decide whether to pause the foreclosure process.
During the moratorium, foreclosure prevention specialists will determine if there's a good possibility that a loan modification will work. In other words, will a borrower be able to regain his footing and start paying his mortgage again?
Lenders often lose money when they foreclose on and resell properties - an average of $50,000 per home. It's cheaper to work out a deal with defaulting borrowers.
Homes: Rent or Buy?
Owning your own home: an idea so popular it's known as the American dream. But as prices fall and foreclosures rise, for many it's become a nightmare instead.
How do you know whether renting or owning is the way to go?
Stacy Johnson looks at some ways in this video (runs 1:18).
If you have questions about whether your particular financial situation would make it better to rent or buy, contact us. We'll help you determine which is right for you.
Real Estate Foreclosure Scam Artist
Although this story centers around a scam artist in Southern California, be aware… scams like this are happening everywhere, not just in Southern California.
Los Angeles CBS reporter David Goldstein offers help in this video on convicted felon Raul Altamirano. This video runs 4:28 but is well worth your time to see how you can prevent such scam artists from duping you, and just how low some scum bags will stoop to take advantage of people going through a tough time financially.
Tell us what you think about this report. We'd love to hear your comment by using the "comment" link below.
Richmond VA Housing Slump? Homeowners Don't Believe It
Despite numerous reports showing home values in historic decline, more than three out of four homeowners believe their own home has not lost value in the past year, according to an online survey.
The survey was conducted by Harris Interactive for Zillow.com, a Web site that gives estimated home values.
The survey of 1,619 homeowners found 36% believe their home has increased in value, and another 41% believe their value has stayed the same. Only 23% believe their home has lost value.
Figures from the National Association of Realtors show that the median price of an existing home sold in 2007 fell 1.4% from 2006, the first decline in that key price measure the trade group has ever recorded.
We'd love to hear what you think. If you're a homeowner, do you feel that your home has decreased, or increased, in value? Leave us your comment at the "comment" link below.
Paying Down Mortgage vs Investing Your Money
You've got a little extra cash coming in…do you invest it, or would it be smarter to pay extra on your mortgage?
Let's find out: simple answers to complex questions are in this video (runs 1:28)
Tell us what you think. Are you better off paying down the mortgage, or investing those same dollars? Use the comment link below to give us your feedback.
