Tuesday, April 22, 2008

Is the mortgage crisis causing divorce?

If financial problems are one of the top reasons for divorce, and the mortgage crisis is causing increased financial problems, it would be logical to assume that the mortgage crisis is causing increased divorces.

Divorces are also one of the top three reasons for foreclosure, so if divorces are up, won't foreclosures also go up, and as foreclosures go up, so will divorces.Sounds like I spiraling problem to me. Here are what the experts at Divorce 360 have to say:
It's just one more point of stress for couples already on the ragged edge.
Experts are positing that the recent rise in divorce is directly related to the
rise in foreclosure, as well as the stress of mortgages that keep going up, up,
up.

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Monday, April 21, 2008

1 in 33 US Households are predicted to Foreclose

3% of US homeowners are predicted to experience foreclosure over the next two years. The primary culprit for this massive increase is the large amount of "subprime" loans that were given in 2005 and 2006.

In states that experienced the biggest housing boom, this foreclosure rate is expected to be even more harmful. In Nevada, nearly one in 11 homeowners is expected to go through some stage of the foreclosure process, and in Arizona, 1 out of every 18 households will default in payments and will likely foreclose.

This foreclosure rate will not only effect the homeowners, but will effect the value of homes in neighborhoods with high number of foreclosed homes. It will also make it more difficult for many sellers to sell their home as their will be increased competition of underpriced foreclosure homes.

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Monday, April 14, 2008

Get $7,000 in tax credits to buy foreclosures?

With taxes on everybody's mind this time of year, would anybody like an extra $7,000 in tax credits?

This just might be reality next year. A $7,000 tax credit just for buying a foreclosed house.

The "Foreclosure Prevention Act" has already passed with the Senate with an overwhelming decision in favor of the 84-12 vote. Part of this package would give the buyers of foreclosure homes a $7,000 credit to help provide relief to struggling banks who have huge inventories of foreclosed properties.

The program seems a bit too much like a bail out for the banks to me, and likely won't do as well in the House of Representatives and the White House, but if it does, buying foreclosure properties will be all the more appealing...

Wednesday, April 9, 2008

Fannie Mae changes loan guidlines for those with foreclosures on their credit

Fannie Mae, The mother of the secondary mortgage market is making changes to help reduce future foreclosures. Among these changes are larger required down payments for Fannie Mae loans, and more difficult terms for those with past foreclosures to get mortgage loan financing.

New guidelines effective June 1, 2008, require that borrowers are free from any foreclosure for atleast 5 years. After this five year period, the borrower who has perviously foreclosed must have a minimum down payment of ten percent and a minimum FICO credit score of 680. Fannie Mae Borrowers who have not had foreclosures on their credit history, are only required to have a 580 credit score.