Archives for February 2011

Interest Rate Rise Projected

By Mike Colpitts Call it what you want -- Denial, manipulation, propaganda, fraud or a defect in the way we think. But the housing market doesn't always just go up, up and away as we’ve all seen in the past several years. Sometimes it has incredibly destructive economic forces that cause it to crash. A rise in mortgage interest rates is projected next. Today more than five years after markets started crashing in the most severely impacted … [Read more...]

Expecting Huge Penalties, Banks Want More Money Down

By Kim Olson Gone are the days when you could “put nothing down” to get a home mortgage. Lenders are pushing for bigger down payments, and want more money down, forcing borrowers to rethink just how much house they can afford. The developments come as the nation’s largest mortgage lenders, Bank of America, Wells Fargo and Citigroup admit in public filings that they are likely going to be facing sizeable financial penalties for abusive mortgage … [Read more...]

Victims of a Reverse Mortgage

By Sandy Jolley In Her Own Words This story is about my parents, Patricia and Richard Hickerson who were sold a reverse mortgage that was not needed or appropriate for their circumstances. It’s a tragic story of deceit, fraud and purposefully targeting vulnerable seniors to deprive them of their property, retirement, dignity and quality of life. This didn’t just happen to my parents. There are thousands of other families with similar … [Read more...]

Victims of a Reverse Mortgage

Part 2 Mandatory HUD counseling required for reverse mortgages does not protect or help the borrower. The counseling is never done with the final figures of the contract, which changes absolutely everything, including the terms, disclosures, costs and fees, the amount of funds (money) to the borrower and most of all the ability to understand the consequences for their particular circumstances and financial situation. There is no counseling … [Read more...]

Mortgage Rates Drop Amid Middle-East Turmoil

By Kevin Chiu Mortgage rates dropped for the second week in a row as violence breaking out in the Middle–East troubled financial markets, according to Freddie Mac. Rates on fixed rate loans and adjustable mortgages all fell below last weeks levels. The interest rate on a 30-year fixed rate mortgage averaged 4.95% with 0.6 point for the week down from 5% last week. The rate on a 15-year fixed rate mortgage also saw a drop to 4.22%, a … [Read more...]

Baby Boomers Celebrate 65 by Moving Homes

By Mike Colpitts The first baby boomers hit 65-years-old this year, but they won’t be living like their parents as they enter senior–hood in a whole new way defying the odds, and living longer moving homes more than most could have imagined. A combination of better diets, exercise and medical science is driving the expectation of a longer life, but the financial crisis has handed boomers a volatile mix forcing many to go back to work at … [Read more...]

Refinances Lead Mortgage Rise as Rates Drop

Pushed by higher interest rates over the last month, mortgage applications saw a rise from a week ago as home purchases and refinancing shot upward. Refinances led the increase in volume by 17.8%, while purchase money applications rose a seasonally adjusted 5.1%, according to the Mortgage Bankers Association. The combined market composite index for mortgages rose a seasonally adjusted 13.2% as homeowners and home buyers moved more rapidly … [Read more...]

Home Sales Rose Third Straight Month

By Mike Colpitts Home sales rose for the third straight month as lower home prices and near record low mortgage rates drove more buyers back into the market, according to the National Association of Realtors. Existing sales of single family homes, townhouses, condominiums and co-ops tracked by the association increased 2.7% to a seasonally adjusted annual rate of 5.36-million units in January. The rise in annual sales is up from a … [Read more...]

The Truth Behind Reverse Mortgages

By Kim Olson We’ve all seen the advertisements on reverse mortgages: “Get money now, pay all of your bills, stay in your home as long as you want to, and never make another mortgage payment!” That sounds good, doesn’t it? However, although these can be good for older homeowners, they may have drawbacks that will do more harm than good in some circumstances. If you or a loved one is considering a reverse mortgage, know what you're getting … [Read more...]

Maine Robo-Signing Cases Thrown Out

By Kevin Chiu A federal judge in Maine has thrown out two of three charges against GMAC Mortgage in a highly publicized robo-signing foreclosure lawsuit that could set a precedent for similar actions. U.S. District Judge Brock Hornby dismissed claims from homeowners seeking financial damages from GMAC for improper foreclosures as a result of foreclosure affidavits that were signed by employees, who may not have confirmed the existence of … [Read more...]