While this blog doesn’t promote underhanded actions to prevent paying legal obligations, we think the story of one couples actions to stave off foreclosure is most interesting.
As the story goes, the couple was served with a [tag]foreclosure lawsuit[/tag]. Rather than turn over the keys, the husband hit the law books. Flooding the courts with papers, the couple staved off foreclosure for 11 years, until this past January, when a county sheriff’s deputy evicted the couple and changed the locks. They didn’t make a mortgage payment the entire time.
The case is believed to be the longest residential foreclosure of its kind in the history of Cuyahoga County, which is at the epicenter of the foreclosure crisis currently enveloping Ohio and many other parts of the country. Foreclosure actions are generally routine, typically taking from a few months to a couple of years to get the borrower out of the home. (more…)
This one-of-a-kind lakefront lot is truly unique within the [tag]Malone Bay[/tag] community. It is one of the most desirable, if not the most desirable lot among the few remaining properties with waterfront access to [tag]W. Kerr Scott Lake[/tag].
Malone Bay features 18 lots at [tag]W. Kerr Scott Dam[/tag] & Reservoir. 14 are Lakefront and meet private dock requirements. This is a gated community with Lots ranging from 2.3+- acres to 6.8+- acres On the Hwy 421 side of the lake just off South Minton Road, Wilkesboro, NC 28697
Main Channel Views.
300 feet of waterfront.
Dock with boat slip and 2 jet ski slips.
2.86 acres.
MLS Number: 51155
List Price: $359,000
Lot Size: 2.86 ac.
Apx Acreage: 2.86
Type: Waterfront
Area: Area 2
Suitable Use: Residential
Topography: Rolling
Utilities: Underground Utilities
Road Frontage: Private Road
Restrictions: yes
Water/Sewer: Public Water
Miscellaneous: 1-5 Acres
Location: Malone Way
In today’s depressed real estate market, reverse mortgages are helping people who are struggling to meet payments on high-interest-rate loans and keep their homes. The strategy is quickly gaining popularity among legal-aid attorneys and housing advocates around the country and calls for persuading lenders to take the cash generated by a reverse mortgage in lieu of foreclosing on older homeowners.
With a reverse mortgage, the bank makes payments to the homeowner instead of the homeowner making payments to a bank. The loan is repaid, with interest, when the borrower sells the house, moves out permanently or dies. It may be the best option for people who have built up equity in their home and would otherwise lose it. (more…)
Under a plan coordinated by the Federal Reserve Bank’s Boston branch, five banks have indicated a willingness to make available $125 million to refinance [tag]subprime mortgage[/tag]s in New England that are scheduled to reset at higher rates.
This novel plan is intended to attract borrowers who have loans typically made to people with weak credit but whose credit scores, home equities, and payment histories would probably qualify them for traditional mortgages.
Many of these probably could find refinancing on their own, Fed officials acknowledged, but they have been wary of seeking help because their loans may be troubled already. (more…)
Much discussion has been made here, and on other financial sites, about the recent Fed plan to help subprime borrowers. That group of mortgage holders have loans are due to reset to higher interest rates next year. Left out of the mix are hundreds of thousands of borrowers with good credit who could face sharp increases in their payments.
That group are sitting on loans known as option adjustable-rate mortgages, or option ARMs. By definition, those loans give borrowers a choice about how much to pay back each month. If they choose to make only the minimum payment on a regular basis, their loan balance can actually rise. (more…)
Fraud is helping to explain why [tag]mortgage defaults[/tag] and [tag]foreclosures[/tag] are rocking financial institutions, Wall Street and the economy. The Federal Bureau of Investigation says the share of its white-collar agents and analysts devoted to prosecuting mortgage fraud has risen to 28%, up from 7% in 2003.
Suspicious Activity Reports, which many lenders are required to file with the Treasury Department’s Financial Crimes Enforcement Network when they suspect fraud, shot up nearly 700% between 2000 and 2006. In some neighborhoods, the fraud scheme itself may have artificially raised values. Another explanation is that the appraisal market is fiercely competitive. Experts say some appraisers may offer inflated values in exchange for their standard fee of several hundred dollars — a strategy that can win business without exposing an appraiser to charges of fraud.
Unscrupulous sales agents are popping up in the booming [tag]reverse mortgage[/tag] industry. As a result, where reports of deceptive and high-pressure sales tactics are worrying lawmakers and consumer advocates.
Reverse mortgages are designed for homeowners, age 62 and older, to borrow against their home equity. The money goes unpaid until the home is sold or the borrower dies or permanently moves out. The older the borrower and the greater the value of the home, the more money that can be borrowed.
Reverse mortgages, if used properly, can provide cash to help seniors live more comfortably. The Senate on Dec. 14 passed bipartisan legislation that removes the cap on the number of reverse mortgage loans that the Federal Housing Administration can insure. (more…)
City: [tag]Valle Crucis, NC[/tag]
Stories: 2
Bedrooms: 4 Baths: 4.5
Area: Boone-[tag]Blowing Rock, NC[/tag]
Year Built: 1990
Plus Five fully furnished 1,400 sq. ft. Rental Cottages. Each built in 1996 on approx. 1/2 acre sites. Current cottage average annual rental income $150,000.
39.4 acres with 360 degree view of [tag]Blue Ridge Mountains[/tag].
5,200 sq. ft. main house built in 1990 on 1.24 acres.
No restrictions and no zoning offer many other options:
* Family compound
* Corporate retreat
* Religous retreat
* Horse farm / Dude ranch
* Recording studio
* Cottages can be sold separately
* Land can be further subdivided if desired
Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net
President Bush has signed a bill into law that gives a [tag]tax break to homeowners[/tag] who have mortgage debt forgiven as part of a foreclosure or renegotiation of a loan. No taxes would be owed on the value of any debt forgiven or written off. Currently such debt forgiveness is taxable income. While the measure is anticipated to reduce taxes of some strapped homeowners by $650 million, the cost to the government would be offset in part by limiting a tax break available on the sale of second homes. Steep prepayment penalties on [tag]adjustable rate mortgage[/tag]s have made it difficult for some to get out of their mortgages, and some overstretched homeowners can’t afford to refinance or sell their homes. (more…)
We’ve all heard of the problems with low or no-down payment loans, subprime loans, resets and a plethora of less-than-desirable loan scenarios. So, will reverse mortgage loans become the next “subprime” debacle?
[tag]Reverse mortgage[/tag]s were meant to be the most conservative loan vehicle available to homeowners. You have to be at least 62 to get one, and the vast majority share the same closing costs and interest rates, regardless of lender. The market for reverse mortgages is expected to explode in the next two decades, as [tag]aging baby boomers[/tag] seek to unlock trillions in home equity.
Reverses are not right for everyone, but officials say they’re especially ripe for abuse, because seniors can be misled easily. Federal regulators are finding that some borrowers who were sold a reverse mortgage and an annuity from the same salesman, generating huge fees and tying up the homeowners’ money. (more…)
Recently polled consumers, by 41%, agree strongly that [tag]mortgage brokers[/tag] should be better regulated. According to the Wall Street Journal Online/Harris Interactive poll, conducted Dec. 10-12, a quarter of respondents agree that the government should provide financial help for mortgage holders, while 20% disagree and another 22% strongly disagree.
When asked who’s most responsible for the trouble in the housing market and mortgage business, half blamed mortgage lenders and brokers, while 21% said government regulators are responsible and 16% said home buyers are to blame.
Nearly half of those surveyed also say direct lenders are most responsible for making sure borrowers are able to pay their mortgages and that they should be required to modify loan terms for [tag]mortgage holders[/tag] who can’t afford their current terms. By comparison, 15% disagree and 24% said they neither agree nor disagree. (more…)
The nation’s largest investor in [tag]residential mortgage[/tag]s has decided to air an Internet video about [tag]foreclosure fraud[/tag]. Recent website traffic counts found that the Internet is the first place one in four mortgage delinquent homeowners go for mortgage information. Unfortunately, Internet searches can send consumers into the hands of con artists whose only desire is to steal their home equity. Freddie Mac’s two-minute “Avoid Fraud” video dramatizes a common foreclosure fraud scheme and demonstrates the game the scam artist plays to get at your equity.
New[tag] lending regulations[/tag] expected to be proposed would apply to loans made by all types of lenders, including banks and brokers. The plan from the Fed, which has regulatory powers over the nation’s financial system, could be finalized next year.
The Fed is considering barring lenders from penalizing [tag]subprime borrower[/tag]s and those who pay their loans off early. New regulations may also force lenders to make sure that borrowers, especially subprime borrowers, set aside money to pay for taxes and insurance and restricting loans that do not require proof of a borrower’s income. (more…)
The [tag]United States Senate[/tag] approved a bill that will make it easier for thousands of homeowners with [tag]ballooning interest rates[/tag] to refinance into federally insured loans. The legislation, approved 93-1, would allow the [tag]Federal Housing Administration[/tag] to back refinanced loans for borrowers who are delinquent on payments because their mortgages are resetting to sharply higher rates. The bill also tries to make FHA loans more attractive than risky [tag]subprime loan[/tag]s by accepting lower down payments and expanding the eligibility for counseling for homeowners having difficulty with their mortgage payments. (more…)
Beautiful Wilkes County NC Timber Frame Home and Mountain Property.
MLS Number: 51166, List Price: $898,500
2 Bedrooms, 2 Baths, 2 half baths, 2 car attached garage, full basement, and a barn on 5 acres of land.
These terms are used to describe thousands of homes and yet some things just can’t be described, they have to be experienced. This is one of those homes that really has to be seen to be appreciated.
This majestic Timber Frame home of the Bob Timberlake genre is not just another house, it provides a feeling of home that is not about walls and floors and windows and doors. It creates a feeling of the flow between your outdoor and your indoor environment that is seamless. Everywhere you look there is a view. Everything you touch feels natural and beautiful in a way that cannot be described, only owned.
Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net
It’s a given that home buyers should put down 20 percent or more on their home purchase. Those that can afford that kind of [tag]mortgage down payment[/tag], will secure a loan on the best terms. And, those borrowers will save by not having to pay for [tag]private mortgage insurance[/tag] (PMI) or the FHA equivalent of PMI, also known as MI, or a higher monthly interest rate.
Smart borrowers need do consider that there may be sources for a down payment other than a savings account. For example, some companies allow participants to borrow from their 401(k) plan. Usually the loan must be repaid within a fix amount of time, typically five (5) years. And, if the borrower leaves that company’s employment, the 401(k) loan might have to be repaid within a number of days from separation. (more…)
For the people who pay their bills on time and avoid excessive debt, the [tag]mortgage bailout[/tag], coupled with [tag]subprime loan problem[/tag]s is causing those folks to bear additional mortgage related expenses. [tag]Fannie Mae[/tag] last week raised costs for many borrowers by quietly adding a 0.25% up-front charge on all new mortgages that it buys or guarantees. On a $400,000 mortgage, that would mean an extra $1,000 in fees. Most certainly, the increased costs will be passed on to the consumer. [tag]Freddie Mac[/tag], the other big government-sponsored mortgage investor, is expected to also impose a similar fee. The fee is the latest in a series of moves by Fannie and Freddie that raise the cost of credit for some borrowers. Late last month, they imposed surcharges that affect mortgage borrowers who have credit scores below 680, on a standard scale of 300 to 850, and who are borrowing more than 70% of a property’s value. (more…)
For a variety of reasons, the American consumer has been piling-on a mountain of debt. [tag]Bankruptcies[/tag], [tag]mortgage delinquencies[/tag] and [tag]credit card bills[/tag] are all up, but some of that debt isn’t their fault. Predatory lenders are the cause of many subprime defaults, and they’re also hurting consumers in the wallet, too. The American Bankruptcy Institute says that consumer bankruptcy filings increased over 28 percent in November, year over year. Chapter 13 filings constituted 39.53 percent of November’s cases, a slight increase over October. Adding to consumer pressures are credit card debt, which the Federal Reserve says consumer debt increased 5.25 percent in the third quarter. Right now, consumers are carrying about $2,200 in credit card debt. (more…)
The recent plan proposed by the White House will help some borrowers with [tag]subprime adjustable-rate mortgage[/tag]s. Other borrowers who are having trouble making their payments may not qualify for the interest-rate freeze. To qualify, borrowers must live in their home and face a payment increase of more than 10% when the rate on their ARM resets for the first time. The program is designed to help borrowers who aren’t good candidates for refinancing because of a poor credit score, have little or no equity in their homes or a history of late payments. To qualify for the [tag]fast-track mortgage assistance program[/tag], borrowers must have a credit score of less than 660 and it can’t have improved by more than 10% since the mortgage was originated. (more…)
A national hotline to help [tag]borrowers facing foreclosure[/tag] has been inundated with calls. Borrowers facing foreclosure were told to call [tag]888-995-HOPE[/tag]. This line has had a normal call volume of about 1,500 calls a day. Tracy Morgan, vice president of communications and business development for the [tag]Homeownership Preservation Foundation[/tag] is saying that the hotline service has been deluged with requests since President Bush proposed a plan to help ARM holders with their mortgage interest rate resets.
According to Morgan, calls to the hotline have steadily increased throughout the year as the foreclosure crisis has grown and the hotline has gotten more publicity. Calls increased 100 percent from the first quarter of the year to the second quarter, and 94 percent from the second to the third, she said. The Homeownership Preservation Foundation has increased the number of counselors available to staff the hotline, and it plans to add another 70 by the end of the year to bring the total to 250, she said.
The White House unveiled a foreclosure relief plan that the President Bush said could help 1.2 million distressed homeowners. The plan will streamline the mortgage modification process for many [tag]distressed borrower[/tag]s. It will offer more relief to more homeowners, more quickly and will include a five-year freeze on interest rates for borrowers current with their monthly payments.
However, the rate freeze comes with some limitations. It excludes anyone more than 30 days late at the time the mortgage would be modified or anyone who has been more than 60 days late at any time within the previous 12 months. It also only covers borrowers with [tag]adjustable rate mortgage[/tag]s ([tag]ARM[/tag]s) resetting beginning in 2008 and leaves out any who are judged capable of continuing to make mortgage payments at the higher reset rates. (more…)
The Bush administration is proposing a plan to help homeowners facing an unmanageable increase in their monthly mortgage payments due to [tag]adjustable rate mortgage[/tag] ([tag]ARM[/tag]) resets. The proposal, formulated by Treasury Secretary Henry Paulson in conjunction the mortgage industry, would freeze introductory “teaser” rates on [tag]subprime mortgage[/tag]s, preventing them from resetting to higher rates for five years. The effort is aimed at stemming a threatened wave of foreclosures in coming years as 2 million subprime mortgages – home loans provided to borrowers with spotty credit histories – reset from their introductory rates of around 7 to 8 percent to levels as high as 11 percent, adding hundreds of dollars to the typical monthly payment. (more…)
Lower interest rates offer some home to those looking to [tag]refinance[/tag] before [tag]ARM reset[/tag]s cause exorbitantly high monthly payments, too high for many homeowners to keep their property. [tag]Home mortgage interest rates[/tag] have been falling for the past few months. Fixed interest rates on 30-year [tag]conforming loans[/tag] are averaging 6.20 percent. Rates haven’t been lower since the week ending May 10 this year, when the average was 6.15 percent. When people start feeling the pinch it is always best not to wait don’t wait until delinquency becomes unmanageable. The more delinquent, the fewer options will be available. It’s a good idea to first visit the existing lender. That’s especially true if the lender doesn’t sell loans and has a vested financial interest in keeping its portfolio intact. Don’t overlook other banks, credit unions and other lenders that retain loans. (more…)
U.S. Treasury Secretary Henry Paulson is addressing efforts to stave off a [tag]foreclosure epidemic[/tag] by lenders, those who service loans, and investors who hold mortgage debt. Despite much speculation that the Feds are close to helping coordinate a rescue plan that would broadly freeze levels on [tag]adjustable mortgages[/tag] before they reset to higher rates, few details are available on how such a plan would work. However, Paulson did indicate just who the plan would help. Unfortunately, current thinking is that the plan would probably leave out a large number of homeowners stretched by their mortgage payments. With [tag]subprime borrowers[/tag] divided into four groups, the plan would be most geared toward those who can afford the mortgage now but won’t be able to after the adjustment. The other three groups would be largely without help from the proposed plan; that is, borrowers who can afford an adjustment; those who are already behind on their payments; and those who can refinance into a fixed-rate loan. (more…)
Economists have announced that economic growth will slow down in 2008. Unemployment should tick up only slightly, but remain under 5 percent. But if you’re watching where [tag]interest rates[/tag] are going, the metric to watch is inflation. Experts agree that inflation will remain under 2.5 percent. Earlier predictions were that inflation would be over 3 percent in 2008. If growth isn’t outpaced by inflation, mortgage interest rates could drop further. Mortgage interest rates have fallen below 6 percent for conforming, fixed rate loans. That’s because the government’s predictions about a [tag]softening economy[/tag] and less inflation have been priced into the market. (more…)
[tag]Foreclosures[/tag] have devastated whole neighborhoods in many cities, but the real impact on the finances of cities is still to come. Treasurer’s offices all over the country are bracing for the day when lenders stop paying the taxes on many properties in the worst hit neighborhoods. Cities that counted on the continued growth will have to scramble to close revenue gaps as tax growth flattens. Even if lenders sell off still viable homes to new owners, those homes could still bring in lower tax revenues. Many of these homes will turn over only at fire-sale prices and the new owners will want assessments redone. Existing homeowners in areas with plunging values will ask for reassessments too. (more…)
