Did that headline grab your attention? It seems to be grabbing attention across the country, but when homeowners apply for these rates to refinance their mortgages, they are being declined. What is going on? According to Jack M. Guttentag, The Mortgage Professor on Yahoo, millions of mortgages currently with rates of 6-9% or higher are being declined because of Fannie Mae and Freddie Mac, now in government conservatorships. They were too liberal in their lending for years and are now reacted to the aftermath by becoming excessively restrictive. As per Guttentag, these are the reasons consumers aren’t getting approved:
1. Credit Score Too ...
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White House Pressing Banks to Enter into More Mortgage Modifications
According to Reuters, eight investors accused Bank of America of questionable behavior and the White House has warned it will hold lenders responsible for any illegal foreclosure practices. Bank of America and GMAC Mortgage, two of the largest mortgage servicers, also faced criticism they were acting too fast in announcing the lifting of foreclosure freezes they imposed in response to accusations of shoddy paperwork.
This comes months after New York City’s Comptroller, John C. Lui wrote letters to CitiGroup, JPMorgan, Bank of America and Wells Fargo asking what efforts they undertook to respond promptly to customers’ requests about modifying ...
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Can’t Modify Your Mortgage? Consider the Benefits of Chapter 13 Bankruptcy
Many homeowners today are facing foreclosure due to failed attempts at loan modifications. In such circumstances, filing Chapter 13 bankruptcy may be a way for those who have a regular source of income to reorganize their debt into a manageable monthly payment. It can be a great alternative to a loan modification if you still want to keep your home, and in addition, you may be able to eliminate most of your unsecured debt during the process.
Chapter 13 bankruptcy has many benefits, perhaps the most commonly known is the ability to stop foreclosure and allow a homeowner to get caught up on past due mortgage payments. In the event that you ...
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