Mortgage Help

The Hope Now alliance announced today that serviers have processed 1,178,000 loan workouts since launching the program in July 2007.   Over 300,000 workouts were processed in January and February of this year, including 196,200 repayment plans and 113,500 loan modifications.  Hope Now is an alliance of couselors, mortgage market participants, and servicers created to provide mortgage help to as many homeowners as possible.

Borrowers can contact Hope Now at 1-888-995-HOPE or visit www.hopenow.com.

President Bush announced several new initiatives today that may help up to 1.2 million homeowners keep their homes.  The HOPE NOW plan is designed to help mortgage borrowers who can afford their current starter rate on an adjustable rate mortgage.  The companies in the HOPE NOW alliance have agreed to help borrowers in the following ways:

1) Refinance existing adjustable rate loans into new mortgages
2) Move the borrower into an FHA loan
3) Freeze the borrower’s interest rate for 5 years

Additionally, the HOPE NOW alliance has set up a toll free number (1-888-995-HOPE) to provide mortgage counseling.

For more details on this plan, visit the White House website

Existing home sales fell 8% in September, according to the latest survey by the National Association of Realtors.  This was bigger than the 4.5% decline that was expected and the slowest pace on record.

Prices also fell.  The median price fell 4.2% from last year to $211,700.  Sales prices have decreased in 13 of the last 14 months.

A credit freeze is one of the most effective ways of preventing identity theft. A credit freeze (also known as a credit lock), stops all access to your credit report by banks, finance companies, and other lenders. Since no one can pull your credit report, no new loans can be taken out in your name, unless you request a temporary (or permanent) removal of the freeze.

To obtain a credit freeze, you must contact each of the three major credit bureaus. The contact information and additional details about credit freezes can be found here:

Equfax

Experian

TransUnion

Depending on which state you live in, you may have to pay a modest fee (around $10) for a credit freeze.

Alan Greenspan, former Chairman of the Board of Governors of the Federal Reserve, said this week that he expects “as a minimum, large single digit” percentage declines in US home prices and would not be surprised if the fall was “in double digits.”

 Financial Times interview

There were 243,947 foreclosures in August according to the latest RealtyTrac survey, up 36% from July and 115% from last year.  This is the highest number of foreclosures in a single month since RealtyTrac began the survey.

Nevada, California, and Florida had the top foreclosure rates.  Nevada had 1 foreclosure for every 165 households, California had 1 for every 224 households, and Florida had 1 for every 243 households.  The national average was 1 foreclosure for every 510 households.

The RealtyTrac release can be found here

The rate of homes entering foreclosure was nearly triple last year, at an all time high in the latest Mortgage Bankers Association survey.

The rise in foreclosures is mainly due to an increase in the foreclosure rates in Florida, California, Arizona, and Nevada.  Ohio’s foreclosures are twice the national average, and neighboring states are also experiencing problems.

Delinquency on mortgage loans increased substantially, up 16.6% from last year.  The increase in overall delinquency is due to an increase in delinquency for adjustable rate mortgages — delinquency for fixed rate loans actually fell from last quarter.

 For mortgage help, please visit our FAQ.

The Pending Home Sales Index fell over 12% from the July reading.  The National Association of Realtors attributes this to continued tightening by mortgage lenders.

Read the details here.

President Bush announced several initiatives today designed to help homeowners avoid foreclosure.

First, the Federal Housing Administration (FHA) would be modernized, allowing lower downpayments and larger loan amounts from the FHA.

Second, the President called on Congress to change the tax code so that homeowners forced to sell their homes for less than they are worth are not forced to pay tax on the forgiven mortgage amount.  Currently, this forgiven loan amount is taxed as  income.

Third, the administration will work with outside groups to help provide additional refinancing alternatives to homeowners facing foreclosure.

Read more details here

Housing inventory rose 5.1% in June and now stands at 9.6 months — meaning that at the current sales pace, it would take 9.6 months to sell the supply of homes currently on the market.  This is up from 9.1 months in June, showing that weakness in the housing market continues.

 National Association of Realtors Survey