Loan Modification--Mortgage Articles and Current News

A Second Mortgage Disaster On The Horizon?

60 Minutes: New Wave Of Mortgage Rate Adjustments Could Force More Homeowners To Default.

(CBS) That second wave is coming ashore at a place you might call the "Repo Riviera" - Miami Dade County. Oscar Munoz used to sell real estate; now his company clears out foreclosed homes.
"Business is just going through the roof for us. Fortunately for us, unfortunately for the poor families who are going through this," Munoz explains. Read more....

A Tale of Two Loan Modifications, As Investors Sue Countrywide

A predatory-lending settlement that will see Countrywide modify as many as 400,000 loans, reducing payments due on mortgages it services by as much as $8.4 billion, has led a group of investors to sue Bank of America Corp. (BAC: 14.93 +0.13%) and Countrywide. In a complaint filed Monday morning by the New York-based law firm of Grais & Ellsworth LLP, investors say the language in their contracts require the Calabasas, Calif.-based servicer to purchase all modified loans out of affected securitization trusts. Countrywide has said it does not believe it is required to do so. Read more....

 

 

 

 



Half of 'rescued' borrowers still default


Many modified mortgages in 2008 defaulted in 6 months, a top federal regulator says. A new study raises concerns over the quality of such loan adjustments.

WASHINGTON, D.C. -- More than half of delinquent homeowners whose mortgages were modified earlier this year ended up redefaulting within six months, a top bank regulator said Monday.Some 53% of borrowers with loans modified in the first three months of 2008 and 51% of those with loans modified in the second quarter could not keep up with payments within six months, according to U.S... Read more....

Bill embraces FDIC loan modification plan


Controversial foreclosure prevention floated on Capitol Hill, but action is unlikely until next year.

NEW YORK (CNNMoney.com) -- With the Bush administration refusing to enact FDIC Chairwoman Sheila Bair's controversial loan modification plan, lawmakers are taking matters into their own hands. On Wednesday, Rep. Maxine Waters, D-Calif., is introducing the first legislation incorporating Bair's proposal to systematically modify loans and provide a government guarantee against default. The measure is estimated to ultimately save 1.5 million homeowners from foreclosure.. Read more....

Foreclosures soar 76% to record 1.35 million


Foreclosure rate hits nearly 3% in the third quarter, while another 7% of borrowers fell behind on their mortgages.

NEW YORK (CNNMoney.com) -- A record 1.35 million homes were in foreclosure in the third quarter, driving the foreclosure rate up to 2.97%, the Mortgage Bankers Association said Friday. That's a 76% increase from a year ago, according to the group's National Delinquency Survey. At the same time, the number of homeowners falling behind on their mortgages rose to a record 6.99%, up from 5.59% a year ago, the association said.This means that one in 10 borrowers in America are either delinquent or in foreclosure... Read more....

$50 billion of bailout going to employee bonuses

As if the economic bailout by U.S. taxpayers isn't enough to make you sick to your stomach, new information has come to light that several banks are planning to pay billions of dollars in year-end bonuses from the bailout funds they received. 

What's scary about this recession

That global circus of leverage and the unwinding of that leverage -- what we call the global financial crisis -- has had five big impacts on the shape of the recession we now face:

How Short Sales Affect Credit

The affect of foreclosures and short sales on credit reports and FICO scores. Which is better to see on a credit report - a foreclosure or a short sale? How soon after foreclosure or short sale can a seller buy a new home?