Smart Borrower Blog

Archive for the ‘Mortgage Refinancing’ Category

Swindlers Take Advantage Of Distressed Homeowners

Every night, the nightly news tells us about more and more foreclosures, and people in trouble with credit card bills and other unsecured debt. People, desperate to get out from under this staggering situation, are turning to any service or company that can help them find relief. With people in such distress, it is inevitable that unethical people come around to take advantage of them. In an article in The New York Times, the reporter wrote about a new breed of swindler. These defrauders aren’t trying any longer to bilk people out of the little equity they may have in... more »

Pimco Backing Out of U.S. Treasury Toxic-Debt Program

Pimco, the world’s largest bond manager, has backed out of the treasury’s plan to buy up to $40 billion in assets from banks, according to Bloomberg. The plan, called the Public-Private Investment Program (PPIP), was originally expected to buy as much as $1 trillion in mortgage backed assets and devalued real estate loans. Pimco had originally announced in March that it would participate in the program. In June, the bond manager withdrew its application for participation, citing uncertainties about the design of the initiative. The government’s plan is smaller than originally expected. With Pimco backing away from the program, questions... more »

Mortgage Rates Once Again On The Rise

A recent article in Newsweek tells us that it’s a known fact that the Federal Reserve has been working to keep a mortgage rates down.  They have been buying treasury debt in an effort to keep mortgage rates low.  Although that has seen some light at the end of the tunnel, many economists are warning that now rising mortgage rates will put a stop to any rebound that the Fed had worked hard for. Moody’s, in its weekly  credit outlook released on June 8 said that The Economic Cycle Research Institute’s (ECRI) leading index showed that although the recession may... more »

Who Qualifies For The Making Home Affordable Program?

Often, when searching for content for the blog, I go to such sites as Bankrate or MSN Money. I’ve been keeping an eye on President Obama’s Making Home Affordable program. It is an ambitious effort to help those facing foreclosure. The article on Bankrate was interesting, and answers vital questions for those seeking help. What will this program do for those in need? For one, it helps a homeowner to convert to a fixed rate 30 or 15 year mortgage. The homeowner can be underwater on the loan and still be eligible for the program. The cap stands at 105... more »

Experts Warn OF Another Wave Of Foreclosures

With rising unemployment numbers, housing prices falling and inventory going up, industry experts are predicting that a second wave of the mortgage crisis is due to happen.  They predicted this new wave will be even more severe than the subprime mortgage crisis. Everyone is aware that the housing market is far from normal.  Stability will not happen in the market soon, because the great amount of inventory is causing home prices to drop and the job market is unstable.  I recently wrote on option ARM’s, and the problems this type of mortgaging brought to the market.  With current market conditions,... more »

Small Business Owners Under Fire

It is of particular interest to those that watch happenings in the mortgage market to see what happens when small-business owners get in difficulty.  In an article in the New York Times this morning, there was an article about a Chicago banker turned junk loan buyer.  The buyer, Rick Williamson, sees his role as that of someone helping to clean up bad debt that is clogging the economy.  Mr. Winston says “if you want to fix what is ailing this country, you need to destroy the worthless debt out there.  You have to shut down the zombies, liquidate their assets.”... more »

Total Lending Down in February But TARP Banks Increasing Pace

According to a report from the Treasury Department released Wednesday, the number of loans being made by all residential, commercial and industrial property lenders dipped in February although banks and lenders receiving emergency government funds saw an increase in loan originations. Total lending dropped by a median 2 percent in February, with the Treasury reporting that in the commercial real estate market, “New loan demand remained low due to the lack of new construction activity.” The Treasury added in its statement that  “uncertain economic conditions have resulted in borrowers reducing expenses, paying down debt, and delaying capital expenditure.” Basically, the... more »

One State’s Mortgage Miseries

Maryland is a state that has seen its share of hard time from the fallout in the mortgage market.  Those mortgages in question are the infamous option arm loan.  This was one of those “no money down too good to be true” loans that had extremely attractive interest rates, and put thousands of Maryland homeowners into foreclosure. These loans were so toxic that they put two banks out of business – IndyMac and World Savings. It has caused so much trouble in Maryland that 800 Maryland lawyers have volunteered to help homeowners as part of the state’s foreclosure prevention project.... more »

FTC Fights the Latest Wave of Scammers

Create a conflict, and the scam wizards come out of the woodwork.  Ever the opportunist, they prey on people in trouble, taking advantage of the fact that the person is distressed and confused. Now we see that the FTC has uncovered yet another shady business deal.  Mortgage modification and bankruptcy prevention services are popping up all over the country.  They target consumers whose home is endangered, and used deceptive marketing strategies that aligns them with nonprofit or government organizations. The approach people with their services, and demand an upfront payment for these services.  This can be as much as $1K-$3K. ... more »

Mortgage Delinquencies Up 50 Percent in Past Year

Recent data from one of the major U.S. credit bureau shows that mortgage delinquencies continue to rise, suggesting that the troubled national housing market has not yet bottomed out. According to Dann Adams, president of U.S. Information Systems for Equifax Inc, during February 2009, 7 percent of all U.S. mortgage loans were delinquent by at least 30 days or more, representing a 50 percent jump from the same time last year. Among subprime or poor credit home loans, 39.8 percent of borrowers were delinquent by 30 days or more, up significantly from 23.7 percent in February 2008. “I’m trying to... more »