FHA loans will halt in government shutdown
An impending government shutdown will stop the FHA loan activities. The results, especially if the shut down is prolong, could be severe.
The FHA has become a critical part of the mortgage and housing industries, insuring almost 40 percent of home loans last year for total value of about $200 billion. Even a temporary halt of FHA activities will be highly inconvenient to home buyers, refinancing homeowners, real estate agents, and mortgage lenders. If the shut down lasts long, the impact could be disastrous.
Tea Party members were unconcerned. “There is no such thing as an actual government shutdown,” Michelle Bachmann, a House representative from Minnesota told a group of Tea Party members yesterday. “It is a government slowdown.” Continue Reading »
Homeowners miss mortgages but pay their credit cards
In a departure from traditional behavior, more homeowners continue to pay their credit card bills while falling behind on mortgage payments. Experts predicted that behavior would return to normal after the recession ended, but instead it has become more widespread, according to a study by TransUnion. Read the full story.
Bank trading of foreclosed homes may be illegal, fraudulent
As banks grapple with growing numbers of foreclosed homes, they’re trying new exchange programs and other novel ways to dispose of foreclosed homes. The problem is that such practices may be ill-advised and even fraudulent and illegal. Read full story.
Mortgage fraud hits hard-hit housing markets hardest
Mortgage fraud is increasing the fastest in areas where foreclosures are the highest and home prices have fallen the most. Criminals are heading to distressed housing markets to employ foreclosure rescue schemes and other fraudulent plots, such as “flopping” or selling homes at deflated short sale values then quickly selling it for a higher price. Read full story.
