President Bush has signed a bill into law that gives a tax break to homeowners 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 adjustable rate mortgages 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?
Reverse mortgages 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 aging baby boomers 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 mortgage brokers 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 mortgage holders 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 residential mortgages has decided to air an Internet video about foreclosure fraud. 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 lending regulations 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 subprime borrowers 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 United States Senate approved a bill that will make it easier for thousands of homeowners with ballooning interest rates to refinance into federally insured loans. The legislation, approved 93-1, would allow the Federal Housing Administration 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 subprime loans 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 mortgage down payment, will secure a loan on the best terms. And, those borrowers will save by not having to pay for private mortgage insurance (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…)
