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The Foreclosure Mess: Can We Fix It?
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Credit, Loans & Debt
The Foreclosure Mess: Can We Fix It?
<font face="arial, helvetica, sans-serif" size="1">Learn how to pay down your debt, compare rates of credit cards and get the best interest rate on a loan. Tough economic times call for tough decisions.</font>
A huge backlog of foreclosure cases, paperwork mistakes by banks, and other forces have brought the foreclosure process almost to a halt. (See the AARP Bulletin article, " Delinquent Homeowners .") So
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Cat:827966ee-6d39-4ef7-98a5-0157a43092f8Forum:e6531864-bfc7-433e-b502-f78bb46f08b0Discussion:429798f6-8cea-4db6-8956-230f5b6dcff4
Forums » Money » Credit, Loans & Debt » The Foreclosure Mess: Can We Fix It?
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The Foreclosure Mess: Can We Fix It?
posted at September 28, 2011 2:23 PM EDT
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Posts: 10
First: September 26, 2011 Last: January 13, 2012 |
A huge backlog of foreclosure cases, paperwork mistakes by banks, and other forces have brought the foreclosure process almost to a halt. (See the AARP Bulletin article, "Delinquent Homeowners.") Some homeowners haven't paid their mortgage in two or three years, but still live in their houses. Are you sympathetic to their financial plight, or do you think they are freeloaders who are gaming the system? How can we get out of this mess? |
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Re: The Foreclosure Mess: Can We Fix It?
posted at December 17, 2011 10:11 PM EST
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Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
This next batch of HARP - (Home Affordable Refinance Program Phase II) from the government seems right for those that are only underwater but not behind on their mortgage. It is really meant to curb some "walkaways" - but who knows if it will even work - It was suppose to start this month. I think the market is just gonna have to do what it is gonna do - foreclosures will continue after this "season greeting" moritorium - lenders are holding back properties so as to not flood the market - so are those that are owned by the government - Fannie Mae/Freddie Mac/FHA and the USDA. Home rentals are gonna get real cheap and I think property values will continue to modify down but maybe not as much. It is local property taxes that I really worry about. With stimulus money winding down and not being renewed, municipalities are gonna have to find money for services or continue to cut - most likely we are facing property tax increases in the next few years in great proportion. |
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Refinance
posted at March 11, 2012 10:32 PM EDT
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Posts: 2
First: March 11, 2012 Last: March 12, 2012 |
In fall of 2007 I built a home thinking I would live in it for 2 years and then sell, to avoid capital gains taxes. Half way thru building the home market tumbled. By the time we finished building and moved in, the house was under water. We ended up short selling the home 2 years later for 135,000 less than what we owed on it. This was done thu B of A. My problem is, our credit rating before the short sell was 815 on all three credit reporting companies. Now it is 727, good but not great. This is our ownly blemish on the credit. Because of the short sell I can't get a refinance on the home we now live in, which is owner financed at 7%. It is a no brainer to refinance at 3.5% for 8 years, which is the amount the amount of time left on a 1st mortgage. Does anyone have suggestions on who I can refinance with? I tried Quicken Loans but they said Nyte. Thanks PNic |
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Re: Refinance
posted at March 12, 2012 12:29 PM EDT
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Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
In Response to Refinance: In fall of 2007 I built a home thinking I would live in it for 2 years and then sell, to avoid capital gains taxes. Half way thru building the home market tumbled. By the time we finished building and moved in, the house was under water. We ended up short selling the home 2 years later for 135,000 less than what we owed on it. This was done thu B of A. My problem is, our credit rating before the short sell was 815 on all three credit reporting companies. Now it is 727, good but not great. This is our ownly blemish on the credit. Because of the short sell I can't get a refinance on the home we now live in, which is owner financed at 7%. It is a no brainer to refinance at 3.5% for 8 years, which is the amount the amount of time left on a 1st mortgage. Does anyone have suggestions on who I can refinance with? I tried Quicken Loans but they said Nyte. Thanks PNic Posted by furnituremill Sorry - don't think there is a way because of the $ 135,000 walk that you got on the other home and since your current home is "owner financed" now there is no other type lending institution that is going to take the risk. Nothing the government offers to date can help either. I doubt that your current "owner financier" would be willing to negotiate but nothing wrong with asking for a better rate especially if you can incentivize the deal with some $$$$ up front to buy down your rate. If it is any consequence, maybe just to make you feel better - even 7% isn't that bad. In fact it was about average in history. In the mid to late 80's, people were paying 10 - 17% because of economic conditions. Even now, if you don't have that 80%+ equity in your current home, a refinance might cause you to have to pay PMI adding to your refinance and monthly cost so that also counts for something in your current situation. |
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Re: The Foreclosure Mess: Can We Fix It?
posted at March 12, 2012 10:48 PM EDT
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Posts: 2
First: March 11, 2012 Last: March 12, 2012 |
Just to clarify, my owner financed home is worth 200,000. I owe less than 59,000, so I have 141,000 equity. So there would be no PMI insurance. Maybe the best plan would be to pay the house as off as quickly as possible. What does everyone think? Thanks for your input. |
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Re: The Foreclosure Mess: Can We Fix It?
posted at May 11, 2012 9:14 AM EDT
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Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
In Response to Re: The Foreclosure Mess: Can We Fix It?: GailL1 Just to clarify, my owner financed home is worth 200,000. I owe less than 59,000, so I have 141,000 equity. So there would be no PMI insurance. Maybe the best plan would be to pay the house as off as quickly as possible. What does everyone think? Thanks for your input. Posted by furnituremill With that much equity, you would not have PMI to consider. Your situation involves math computations and scrutiny of your finances - income, work history, credit rating, etc. In other words, you're just the regular ole refi candidate - The only exception is that some banks have a minimum they will right and you are pretty low. You have probably paid down this current loan to where you have very low interest payments each month just based on the outstanding balance. So without knowing any of the figures or your finances, I'd vote for paying that house off ASAP. I paid my off about a year ago and it has made a wonderful difference in my income flow and the inner piece that I have being totally debt free - well as much as any of us can be debt free with taxes and other stuff that is constantly assessed to us. Cut your expenses as much as you can and start throwing everything you can at the mortgage especially since you are getting older by the day and you could be on fixed income. |
Forums » Money » Credit, Loans & Debt » The Foreclosure Mess: Can We Fix It?
