Reverse mortgages are a significant bright spot in the otherwise dismal mortgage industry marketplace. The HUD says it originated more than 107,000 reverse mortgages in fiscal year 2007. That’s up more than 40 percent from a year earlier. Those numbers are important because the FHA is generally said to insure about 90 percent of all reverse mortgages, also known as Home Equity Conversion Mortgages.

Under HUD’s plan, lenders can make a claim when a loan has reached 98 percent of its maximum claim amount but is not yet due and payable. Of these assignment claims, only 109 resulted in losses to the FHA. Another 1,500 reverse loans simply went sour. Burns says there have been no “demand claims” from borrowers as a result of lenders who have not fulfilled reverse mortgage obligations. (more…)

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As a weak housing market nudges the foreclosure rate higher, next year is looking promising for investors in distressed real estate. So far, the U.S. housing slump hasn’t produced a bonanza for such investors, but lenders stuck with foreclosed property are becoming more inclined to slash prices or sell properties through auctions, industry experts say. “We’re all going to have to be more creative in the next 12 to 24 months” in selling foreclosed homes, says Chad Neel, president and chief operating officer of Fidelity National Asset Management Solutions, a unit of Fidelity National Information Services Inc., Jacksonville, Fla. Mr. Neel’s company helps lenders manage and sell foreclosed homes.

In the first half of 2006, REO properties accounted for 3.1% of all U.S. home sales, up from 2.4% two years earlier, according to a study by First American Real Estate Solutions, a unit of First American Corp., Santa Ana, Calif. The study found that those homes sold at a median discount of 14% to their estimated value in the first half, compared with 12.5% two years before. The discounts reflect the gap between the actual sale price for the homes and the value estimated by a computer model, which takes into account sales of comparable homes nearby and price trends. It has taken a while for foreclosures to mount. The housing boom of recent years reduced foreclosure rates because most people who fell behind on their loans could refinance or quickly sell their homes for at least enough to pay off the loans. (more…)

search for : U.S. housing slump, foreclosed property

My friends at The LoanNetwork have asked me to review their website and comment on what I see is good about their service. Prospective borrowers appreciate that lenders and brokers like The LoanNetwork perform a variety of loan origination tasks, which include finding, counseling and qualifying borrowers, taking applications, checking credit and verifying employment and assets. But the lender is the one who must approve the deal and disburse the money to the borrower.

Mortgage brokers and lending networks are not usually authorized to provide final loan approval, nor do they disburse money. As stated on the LoanNetwork website, “Our lender network matches you with up to 4 custom mortgage quotes”. The advantage of submitting an application through the website lies in the LoanNetwork’s ability to match your requirements with the loans being advertised by the lenders through their broker network.

The application process, as well as the lenders’ requirements and products, vary with the different forms of lending; specifically, mortgage refinance, home equity loan or lines of credit, debt consolidation, or a new home loan. The LoanNetwork is well versed with the intricacies of the lending process, allowing them to “get you the best deal”.

Another advantage offered, free of charge, by the LoanNetwork is their Mortgage Q & A page. On that page are dozens and dozens of Questions and Answers with an emphasis on mortgages, refinancing, the Fed, PMI (Private Mortgage Insurance), interest rates and numerous other mortgage related topics.

So, are you shopping for the best rate, with the best terms on your next mortgage product? Visit the LoanNetwork today.

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Reverse mortgages are all in the news. Radio and TV ads are produced, paid-for and aired, just to convince our senior population that their financial salvation may lie in a simple “reverse” mortgage. But, are reverse mortgages the panacea, the supreme financial solution, that will cure all ills?

Reverse mortgages represent a small fraction of the mortgage market. But they’re growing fast because of a much touted advantage — they let seniors with small nest eggs tap equity in their homes for cash, without having to repay the loans as long as they stay in the homes. As the oldest baby boomers turn 62 this year, they’re likely to face high-pressure pitches for reverse mortgages. (more…)

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Facing foreclosure, homeowners can still save money, their credit or their house if they act quickly. Even when declaring bankruptcy, avoiding a foreclosure on your credit report can salvage a homeowner’s ability to rebuild credit and buy another house, which makes the struggle against a possible foreclosure well worthwhile.

One thing a beleagured homeowner never should do is to sign over the property title to another company: Some companies promise that after the mortgage is current they will re-sign the property back over to you. This rarely happens. Instead, the company is likely to pull out equity, not make any mortgage payments and allow the property to be foreclosed. You will not be able to save the property from future foreclosures because the property is no longer in your name. (more…)

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In a move unprecedented in the residential mortgage loan industry, Countrywide Financial Corp. has announced that it is modifying terms on their mortgage loans. Also it is taken other steps that has allowed 81,266 struggling mortgage borrowers to remain in their homes last year.

The lender has been under pressure from politicians and regulators to prevent foreclosures where possible. Lenders also often find that they are better off accepting lower monthly payments from a borrower than going through a foreclosure, which typically results in a large loss.

In a further 7,880 cases last year, Countrywide said, it agreed to “short sales,” in which the borrower sells the home for less than the loan balance and the lender agrees not to demand the remaining amount due. (more…)

search for : residential mortgage loan industry, Countrywide Financial Corp, prevent foreclosures

$5,850,000

MLS Number: 50913

City: Valle Crucis, NC
Stories: 2
Bedrooms: 4 Baths: 4.5
Area: Boone-Blowing Rock, NC
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 Blue Ridge Mountains.

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

click here for more information

search for : Valle Crucis, NC, Blowing Rock, NC, Blue Ridge Mountains

The outlook for anyone interested in buying or selling real estate has been buoyed by the lowest mortgage interest rates in two years. Mortgage rates have hit 5.73 percent on average nationwide for 30 year fixed rate conforming loans and 5.21 percent for 15-year fixed, and about the same for 5-year hybrid adjustables, according to the Mortgage Bankers Association of America.

Low mortgage rates like these normally are a powerful stimulus for home sales, but there’s a sobering underside to the current declines: They are being caused in part by bond market investors’ fears of a U.S. recession. Investors are putting their money into ultra-safe Treasury bonds, lowering the benchmark 10-year Treasury rates that affect the pricing of long-term mortgage money. (more…)

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