Monday, August 22nd, 2011 at
1:39 am
Mortgage loans that were obtained between 2005 and 2007 account for almost two-thirds of delinquent balances said Equifax. Although there is a decrease in the number of past due accounts of at least 30 days, those for 60 and 90 days are still continuously increasing.
In 2010, first mortgage loan write offs, installment loans and revolving accounts of home equity totaled to $304.6 billion. According to the analysis of Equifax, the number will keep on rising without any indications on when it will reach its peak. This number is way above the $126.7 billion total of loan write offs in the year 2006 and 2007.
According to the estimates of Equifax, as of May 2011, the total amount of first mortgage in the early stages of foreclosure is at $319.7 billion. This started in the years 2006 and 2007, a not surprising fact since those were the years when subprime lending activity started to rise.
REO properties is a main obstacle to the recovery of the economy, says Equifax. The reason for this is that REO rates stay high while lenders are struggling to get rid of their properties through short sales and auctions.
The completion rate of foreclosure is at 1.45%. This is in the same level as bankruptcies which are at 1.6% at the present time. Equifax says that the same rates indicate that most REO properties are brought about by the bankruptcy proceedings.
Equifax Mortgage Services’ senior vice president and general manager Craig Crabtree says that real estate owned properties and shadow inventory are performing a main role in the current mortgage market and slowing down the road to recovery of the economy.
Even if there are some stabilized lending sectors, there is still a high volume of past due first mortgage loans which has caused a slowing down of the foreclosure process. The mortgage market will keep on impacting the growth of the economy until the foreclosures are processed.
Wednesday, August 17th, 2011 at
7:19 pm
Home Loan Refinancing Options for Individuals with Bad Credit
Over the past few years, many Americans have refinanced their home loans to take advantage of the low interest rates. But, the low rates are not offered to all homeowners. Currently, the 30 year fixed interest rate is around 4.35%. This is only available to borrowers with good credit. Those with poor credit standing are usually given higher rates than the average.
People with bad credit who are seeking a refinance loan from Bank of America or Countywide must know that they need a credit score of at least 740 to qualify for the 30 year fixed interest rate of 4.5% or below. Moreover, their debt to income ratio must fall below 40% in order to be qualified for this refinance rate.
Sadly, the reality is, these are very difficult requirements to meet for people with poor credit. However, if they are determined to take advantage of good rates, they must try to boost their score by paying down their debts especially the ones incurring high interests. These include credit cards, payday loans and personal loans.
Moreover, even if Bank of America is considered as one of the country’s major financial institution, the low rates are not only exclusive to them. It is a common misconception of Americans with bad credit that not many lenders would want to work with them. In fact, there are plenty of institutions that are looking for customers and would welcome anyone regardless of his or her credit standing.
The website of FDIC provides a list of the mortgage lenders who can help in refinancing a home loan no matter what the status of the borrower’s credit is. There are about 7000 financial institutions all over the country with FDIC insurance that can provide assistance in home loan refinancing with the lowest mortgage rates of interest.
Wednesday, August 17th, 2011 at
7:14 pm
Positive Economic News Despite Wall Street Challenges
Although it may seem unbelievable, economists have some positive news despite the challenging week in Wall Street.
One of this is the chance of Americans with good credit ratings to obtain the best bargains in housing prices. In the latest survey of Freddie Mac, it showed that there has been a reduction in the average rate of 30-year fixed rate mortgages. Currently, it is only at 4.32%. Aside from this, home prices are even lower compared to the previous year. According to the S&P/Case Shriller 20-city composite, prices all over the country have become lower by 46.5%. Low mortgage rates and home prices will help more individuals and families afford their first home purchase. For those that already own a home, they can also benefit from low rates by refinancing their mortgages so that their monthly payments will become lower.
The impact of lower rates also extends to the retail industry. The data of the Commerce Department from the previous week shows that there is an increase of 0.5% in their July sales. This is one of their strongest numbers since March this year.
Moreover, another report from last week showed that state unemployment benefit claims declined by 7,000 resulting to only a total of 395,000. Although it seems high, this is still a better number than what most economists are expecting.
Also, a weaker dollar is a silver lining at this time. This means that U.S manufacturers can effectively and better challenge their competitors in countries with strong currencies.
Finally, there is no better news than oil price reduction. During the spring time, prices of oil and gasoline increased. Currently, the prices are more reasonable at around $85 per barrel. Compare this with the $114 high price that it reached several months ago. The lowering oil price is evidence that there is re-balancing in the economy. When oil is cheaper, gasoline is more affordable. This will help consumers save more money.
Thursday, August 11th, 2011 at
1:57 am
An initiated petition regarding payday, title, consumer credit and installment loans have passed the circulation standards.
Robin Carnahan, the Secretary of State, shared the petition’s ballot title as follows:
Shall the law of Missouri be changed to put limitations to the yearly rates on interest, finance charges and fees for payday, title, consumer credit and installment loans and disallow lenders to utilize other transactions in order to avoid the cap in rates?
Entities of the state government could have a yearly revenue loss amounting to about $2.5 million to $3.5 million. These amounts can be partially offset by reducing expenditures for industry compliance monitoring. Entities of the local government could have a total lost profit associated with licenses and operating fees of businesses if the proposal leads to the closures of businesses.
The petition, which would change both chapters 367 and 408 of the Missouri Revised Statutes, was passed by Mr. James J. Bryan with the address of P.O. Box 154, Glasgow, MO 65254.
Before raising any statutory amendments to the voters in Missouri in the elections of November 2012, registered voters must sign. The number of voters should reach at least 5% of the total number of votes made in the governor’s election of 2008 coming from six out of the nine districts of Congress.
Signatures representing all the initiative petitions for the ballots in 2012 must be submitted to the office of the Secretary of State by 5 P.M of May 6, 2012.
Before moving around any petition, the law of the state requires that the petition’s form is approved by both the Attorney General and Secretary of State. A summary statement is then prepared by the State Secretary. The statement should contain up to a maximum of 100 words. After which, a fiscal impact statement is made by the State Auditor. Both summary and fiscal impact statements must be approved by the Attorney General. Once approval is given, they officially become the ballot title.
Tuesday, August 9th, 2011 at
5:39 am
What Are the Best Bad Credit Installment Loans
Have you ever heard of an installment loan for bad credit? Don’t you know what it is? Let me tell you quickly what an installment loan for bad credit is and where you may be able to get and apply for this loan instantly.
An installment loan for bad credit is known as a loan which gives credit seekers the opportunity to repay by using the monthly installments. Furthermore, it lets people with poor credit the opportunity to get finances without much inconvenience.
The right place to obtain this loan is through online. It’s a lot better and simple to apply for a bad credit installment loan online. It’s a good option to obtain as much data through websites before deciding to apply for the loan.
There are a lot of leading loan providers who give loan online, all you have to do is to fill out the application form that they will provide and simply wait for the lender’s approval. You will need to give a few of your basic information like your full name, permanent address, contact details as well as your bank details (these will help them send the fund to you after the approval of the loan applied).
This particular loan option is somehow good for you mainly because it helps you have the loan even though you have a bad credit history, installments and doesn’t need to have collateral. It is also the ideal loan for you because it’s much better to get than a bank loan. Normally, it takes weeks for a bank to give you a loan and there’s no exact assurance that you will ever get the loan that you need.
