The Los Angeles Times
A Mortgage Bankers Association report Thursday said that after seasonal adjustments, 7.58 percent of all residential mortgages were delinquent by at least one payment as of the fourth quarter of 2011. That was down from 7.99 percent in the third quarter of 2011 and 8.25 percent in the fourth quarter of 2010.
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http://www.latimes.com/business/money/la-fi-mo-mortgage-delinquencies-20120216,0,5231531.story
FICO has launched myFICO en Español, the first Spanish-language website where consumers can obtain their personal credit report, credit report analysis, FICO Score and FICO Score analysis in Spanish.
The new site enables users to toggle between Spanish and English, a format that is preferred by many bilingual speakers. More than 600 pages of Spanish-language consumer financial educational materials are available to visitors.
To access the site, visit http://espanol.myfico.com.
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The Wall Street Journal
Converting home equity into cash has been a challenge for homeowners since the real-estate downturn, but a growing number of lenders are quietly reviving a loan for seniors that does just that: The reverse mortgage.
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http://online.wsj.com/article/SB10001424052970204542404577158990079313270.html?mod=WSJ_RealEstate_LeftTopNews
The New York Times
With most lenders requiring borrowers to put down at least 20 percent as a down payment – unless using an FHA or VA loan, or purchasing mortgage insurance – the best holiday gift some people might receive would be help with a down payment on a house.
Making sense of the story
- According to a survey by Trulia, the biggest barrier to buying a home these days is saving for the down payment. The survey, conducted over the summer, found that 51 percent of renters said coming up with money for the down payment was preventing them from buying, while 35 percent identified qualifying for a mortgage as the stumbling block.
- Under federal tax law, each individual is permitted to give money or valuables worth up to $13,000 to a single recipient in a calendar year. A married couple could jointly bestow up to $26,000 a year per recipient.
- According to one financial planner, there also is the option of lending a relative or close friend the money for the down payment, or the closing costs, then forgiving the loan in a future year. The recipient would have to pay interest on the loan until it was forgiven, at which point it would become a gift.
- Another way to help with the down payment is to pay other expenses, such as tuition, thereby freeing up money to make a home purchase. Gifts for educational or medical expenses are not subject to taxes, as long as they are paid directly to the educational or medical institution.
- However, prior to giving the money, gift-givers should consider their own financial picture, and they should make sure the recipient is responsible and not behind on other payments that could be subject to debt collection.
The seasonally adjusted delinquency rate for mortgage loans on one-to-four-unit residential properties fell to 7.99 percent in the third quarter, according to data from the Mortgage Bankers Association’s (MBA) National Delinquency Survey. This is the lowest level recorded since the fourth quarter of 2008.
The third quarter seasonally adjusted rate of 7.99 percent is a decrease of 45 basis points from the second quarter of 2011, and a decrease of 114 basis points from one year ago. The non-seasonally adjusted delinquency rate increased nine basis points to 8.20 percent this quarter from 8.11 percent last quarter.
The percentage of loans on which foreclosure actions were started during the third quarter rose 12 basis points from last quarter, but were down 26 basis points from one year ago. The percentage of loans in the foreclosure process at the end of the third quarter was 4.43 percent, unchanged from the second quarter and four basis points higher than one year ago.
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In today’s shaky economy, many financial advisers are suggesting that homeowners wait to pay off their mortgage, and instead keep the cash available.
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http://www.nytimes.com/2011/11/13/realestate/mortgages-retiring-without-a-home-loan.html?_r=1&ref=realestate
The September Mortgage Monitor report released by Lender Processing Services, Inc. continues to show significant differences between states that process foreclosures following a judicial vs. non-judicial foreclosure process.
Ranked by the percentage of loans that are non-current, seven of the top 10 states are judicial foreclosure states. Foreclosure inventories in these states continue to climb, accounting for nearly 7 percent of the entire active loan count. Additionally, foreclosure timelines in these states continue to extend at a greater rate than in non-judicial foreclosure states. The time from last payment to foreclosure sale in judicial states is 761 days, 6 months longer than in non-judicial states. Consequently, foreclosure sales in judicial foreclosure states remain very low, with only 1.6 percent of those states’ foreclosure inventories moving to sale.
Judicial foreclosures are processed through the courts, beginning with the lender filing a complaint and recording a notice of Lis Pendens. Non-judicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes.
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Consumers currently home shopping or planning to refinance, need to decide on a specific mortgage program and do research to decide which will be the best fit for their situation.
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http://www.mercurynews.com/real-estate/ci_19249844
