In late December, President Bush signed the Mortgage Forgiveness Debt Relief Act of 2007, which provides tax help for homeowners facing foreclosure or who sell their homes in a short sale. Before the enactment of this Congressional bill, if the value of your home declined and your bank or lender forgave a portion of your mortgage debt, the tax code treated the amount forgiven as income that could be taxed.

Under the new IRS rule, taxpayers can exclude up to $2 million of mortgage debt forgiven in 2007, 2008 or 2009 on their principal residence. However, the limit is $1 million for a married person filing a separate return. According to an IRS spokesperson, mortgage debt reduced through restructuring, as well as mortgage debt forgiven in connection with a foreclosure, both qualify for the tax exclusion. (more…)

Florida’s Attorney General recently unveiled legislation to combat mortgage “foreclosure rescue” scams. At the same time, he cautioned senior citizens about scams associated with reverse mortgages. This type of home equity loan is frequently abused by con artists and scammers.

Reverse mortgage loans are popular options for senior citizens because they offer a cash source which can help meet unexpected medical expenses, supplement social security and provide a better standard of living. Reverse mortgages are a special form of home loan that allow homeowners who are 62 and older to borrow against their home equity without having to repay the money until the home is sold or the borrower passes away or moves out permanently. When the home is sold, lenders recover their principal plus interest. (more…)

search for : Reverse mortgage

Foreclosures and bankruptcy because of foreclosure is on the rise rise nationally. Experts say that it could last for years. A recently released report rates foreclosure risk for 381 metropolitan areas, finding that the risk of foreclosure has jumped 22 percent from January 2007, and 9 percent from three months ago.

In the wake of recent speculation that the United States economy may be entering a recession – or is already in one – the report stressed that defaults continued rising for almost 2 years after the end of the last recession in 2001.

Also aggravating the problem are drops in existing home prices, a situation in which many mortgage borrowers find themselves owing more on their mortgages than their homes are worth. It then becomes more difficult for them to maintain their house payments if they run into any problems, because they can’t borrow against their home.

(more…)

search for : Foreclosures

Mortgages typically fall into two classes; simple interest and compound interest: “Simple interest” means that interest is not paid on interest. With “compound interest” mortgages, interest is paid on interest.

Borrowers can avoid confusion if they understand that a “simple-interest mortgage” is one that accrues interest daily, and should be managed differently than monthly accrual mortgages. With a daily accrual mortgage, every day that borrowers delay their payment results in the accrual of another day of interest. (more…)

search for : simple interest, compound interest

The recent cuts in interest rates by the Federal Reserve has resulted in a rush by homeowners across the country to refinance their mortgages at today’s lower rates. Thirty-year fixed-rate mortgages now carry an average interest rate of 5.57 percent, down from 5.75 percent.

The Fed’s action was a response to worrisome economic and credit market developments that also have been pushing mortgage rates lower in recent months. Mortgage experts say that a mortgage is deemed “refinanceable” if it is 0.40 percentage point above current average mortgage rates. And the recent drops in mortgage rates have made up to 7 million mortgages, or more than 70 percent of U.S. mortgages, eligible for refinancing. (more…)

search for : interest rates, Federal Reserve, mortgage rates

This one-of-a-kind lakefront lot is truly unique within the Malone Bay community. It is one of the most desirable, if not the most desirable lot among the few remaining properties with waterfront access to W. Kerr Scott Lake.

Malone Bay features 18 lots at W. Kerr Scott Dam & Reservoir. 14 are Lakefront and meet private dock requirements. This is a gated community with Lots ranging from 2.3+- acres to 6.8+- acres On the Hwy 421 side of the lake just off South Minton Road, Wilkesboro, NC 28697

Main Channel Views.
300 feet of waterfront.
Dock with boat slip and 2 jet ski slips.

2.86 acres.

MLS Number: 51155
List Price: $359,000
Lot Size: 2.86 ac.
Apx Acreage: 2.86
Type: Waterfront
Area: Area 2
Suitable Use: Residential

Topography: Rolling
Utilities: Underground Utilities
Road Frontage: Private Road
Restrictions: yes
Water/Sewer: Public Water
Miscellaneous: 1-5 Acres
Location: Malone Way

click here for more information

search for : Malone Bay, W. Kerr Scott Lake, W. Kerr Scott Dam

The economic stimulus plan recently announced Congress and the White House includes provisions that specifically address the mortgage crisis. It aims to make getting a mortgage easier and cheaper in high-cost markets, to facilitate refinancing and to prevent foreclosures.

The package proposes lifting the dollar amount of loans that are eligible for purchase by Freddie Mac and Fannie Mae which currently guarantee a secondary market for loans of less than $417,000. The stimulus package proposes raising that cap to $625,000 for twelve months in order to make it easier for buyers to get or refinance mortgages – especially in high-cost locales like Manhattan and South Florida.

The National Association of Realtors recently projected that a higher loan limit, which the organization and other industry trade groups have been lobbying for, would boost home sales by nearly 350,000 a year. It would also reduce the average period of time a home sits on the market by a month and a half, and lift prices by two or three percentage points. (more…)

search for : economic stimulus plan, refinancing, prevent foreclosure

With the recent Fed rate cut, interest rates are at an historic low. Consumers who typically spend more than their income should utilize this phenomena as a gift. Burdened with heavy debt, homeowners should pay down their credit cards and refinance their mortgages as fast as they can.

When the Fed dropped the recommended rate that federally insured banks borrow from each other, the situation impacted consumers immediately in a number of ways. First, short-term borrowing rates immediately improved on credit cards, equity lines of credit, car loans — most all forms of consumer credit.

Second, mortgage interest rates are coming down. If you have an adjustable rate loan, refinance into a low fixed-rate. If you are thinking of buying a home, talk to your mortgage lender and let him or her run your credit report. He or she will tell you whether or not it’s smart to consolidate your credit cards. (more…)

search for : Fed rate cut, refinance, equity lines of credit, adjustable rate loan

Reverse mortgages are a significant bright spot in the otherwise dismal mortgage industry marketplace. The HUD says it originated more than 107,000 reverse mortgages in fiscal year 2007. That’s up more than 40 percent from a year earlier. Those numbers are important because the FHA is generally said to insure about 90 percent of all reverse mortgages, also known as Home Equity Conversion Mortgages.

Under HUD’s plan, lenders can make a claim when a loan has reached 98 percent of its maximum claim amount but is not yet due and payable. Of these assignment claims, only 109 resulted in losses to the FHA. Another 1,500 reverse loans simply went sour. Burns says there have been no “demand claims” from borrowers as a result of lenders who have not fulfilled reverse mortgage obligations. (more…)

search for : Reverse mortgages

As a weak housing market nudges the foreclosure rate higher, next year is looking promising for investors in distressed real estate. So far, the U.S. housing slump hasn’t produced a bonanza for such investors, but lenders stuck with foreclosed property are becoming more inclined to slash prices or sell properties through auctions, industry experts say. “We’re all going to have to be more creative in the next 12 to 24 months” in selling foreclosed homes, says Chad Neel, president and chief operating officer of Fidelity National Asset Management Solutions, a unit of Fidelity National Information Services Inc., Jacksonville, Fla. Mr. Neel’s company helps lenders manage and sell foreclosed homes.

In the first half of 2006, REO properties accounted for 3.1% of all U.S. home sales, up from 2.4% two years earlier, according to a study by First American Real Estate Solutions, a unit of First American Corp., Santa Ana, Calif. The study found that those homes sold at a median discount of 14% to their estimated value in the first half, compared with 12.5% two years before. The discounts reflect the gap between the actual sale price for the homes and the value estimated by a computer model, which takes into account sales of comparable homes nearby and price trends. It has taken a while for foreclosures to mount. The housing boom of recent years reduced foreclosure rates because most people who fell behind on their loans could refinance or quickly sell their homes for at least enough to pay off the loans. (more…)

search for : U.S. housing slump, foreclosed property

Reverse mortgages are all in the news. Radio and TV ads are produced, paid-for and aired, just to convince our senior population that their financial salvation may lie in a simple “reverse” mortgage. But, are reverse mortgages the panacea, the supreme financial solution, that will cure all ills?

Reverse mortgages represent a small fraction of the mortgage market. But they’re growing fast because of a much touted advantage — they let seniors with small nest eggs tap equity in their homes for cash, without having to repay the loans as long as they stay in the homes. As the oldest baby boomers turn 62 this year, they’re likely to face high-pressure pitches for reverse mortgages. (more…)

search for : Reverse mortgages, baby boomers

Facing foreclosure, homeowners can still save money, their credit or their house if they act quickly. Even when declaring bankruptcy, avoiding a foreclosure on your credit report can salvage a homeowner’s ability to rebuild credit and buy another house, which makes the struggle against a possible foreclosure well worthwhile.

One thing a beleagured homeowner never should do is to sign over the property title to another company: Some companies promise that after the mortgage is current they will re-sign the property back over to you. This rarely happens. Instead, the company is likely to pull out equity, not make any mortgage payments and allow the property to be foreclosed. You will not be able to save the property from future foreclosures because the property is no longer in your name. (more…)

search for : bankruptcy, foreclosure

In a move unprecedented in the residential mortgage loan industry, Countrywide Financial Corp. has announced that it is modifying terms on their mortgage loans. Also it is taken other steps that has allowed 81,266 struggling mortgage borrowers to remain in their homes last year.

The lender has been under pressure from politicians and regulators to prevent foreclosures where possible. Lenders also often find that they are better off accepting lower monthly payments from a borrower than going through a foreclosure, which typically results in a large loss.

In a further 7,880 cases last year, Countrywide said, it agreed to “short sales,” in which the borrower sells the home for less than the loan balance and the lender agrees not to demand the remaining amount due. (more…)

search for : residential mortgage loan industry, Countrywide Financial Corp, prevent foreclosures

$5,850,000

MLS Number: 50913

City: Valle Crucis, NC
Stories: 2
Bedrooms: 4 Baths: 4.5
Area: Boone-Blowing Rock, NC
Year Built: 1990
Plus Five fully furnished 1,400 sq. ft. Rental Cottages. Each built in 1996 on approx. 1/2 acre sites. Current cottage average annual rental income $150,000.

39.4 acres with 360 degree view of Blue Ridge Mountains.

5,200 sq. ft. main house built in 1990 on 1.24 acres.

No restrictions and no zoning offer many other options:

* Family compound
* Corporate retreat
* Religous retreat
* Horse farm / Dude ranch
* Recording studio
* Cottages can be sold separately
* Land can be further subdivided if desired

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

search for : Valle Crucis, NC, Blowing Rock, NC, Blue Ridge Mountains

The outlook for anyone interested in buying or selling real estate has been buoyed by the lowest mortgage interest rates in two years. Mortgage rates have hit 5.73 percent on average nationwide for 30 year fixed rate conforming loans and 5.21 percent for 15-year fixed, and about the same for 5-year hybrid adjustables, according to the Mortgage Bankers Association of America.

Low mortgage rates like these normally are a powerful stimulus for home sales, but there’s a sobering underside to the current declines: They are being caused in part by bond market investors’ fears of a U.S. recession. Investors are putting their money into ultra-safe Treasury bonds, lowering the benchmark 10-year Treasury rates that affect the pricing of long-term mortgage money. (more…)

search for : lowest mortgage interest rates

Type the words “credit repair“, “bad credit” or “bad credit repair” into an Internet search engine. The results will be similar to that seen by thousands of consumers every day. While we recommend that you fully research all the methods available to you when trying to repair poor credit, some of the Web sites that come up in a search for “credit repair” will do you more harm than good.

A typical credit repair scam might work in one of a couple of fashions. There is almost always the promise that your credit history will be made to disappear. In return you’ll be asked for a large payment upfront, sometimes as much as $1,000 to $1,500.

For one typical scam, the credit repair organization will tell you that you’ll get a brand-new Social Security number. Since the Social Security number is new, it won’t be marred with non-pay, or slow-pay blemishes and your credit history will be reported as perfect.

We should know better. (more…)

search for : credit repair, bad credit, bad credit repair, repair poor credit

With blessings from both the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Affairs, HopeNow is providing much-needed help for many of this nations beleaguered subprime mortgage borrowers. Refinanced mortgages with fixed rates are available from a HopeNow program to homeowners meeting their qualifications.

Organization of HopeNow is the work of mortgage servicers who represent 90 percent of the subprime market with over 2 million subprime mortgage holders. Impetus to the promotion of the HopeNow programs have been boosted by those holding mortgages that could reset to higher rates in the next two years.

The HopeNow program’s fast track effort is speeding early applicants through the refinance process to free up time for mortgage servicers’ to focus on the more difficult cases. (more…)

The first step in buying any home nearing foreclosure is to retain counsel and get an immediate title search to determine liens or encumbrances against the property. The, if possible, you chould also talk with the homeowners who are facing foreclosure. Perhaps they would be willing to sell the house to you if you will pay off their mortgage.

Even if they are unwilling to do this, at least you will have had an opportunity to inspect the entire property. That’s always a must; for as homeowners near foreclosure the propensity to maintain the property seems to vanish. (more…)

search for : foreclosure

More and more seniors are choosing reverse mortgages, allowing them to have near-instant access to the equity of their home investment. A reverse mortgage relieves the borrower from making monthly mortgage payments. With a reverse mortgage the lender pays the borrower. Income and credit history are irrelevant. The mortgage is based on the equity built into the borrower’s investment in the home.

The amount borrowed must be repaid, plus interest, when when the borrower dies, sell the home or moves out. If the home is worth less than the loan amount, the Federal Housing Administration makes up the difference. That’s the reason why mortgage insurance is required. (more…)

search for : reverse mortgage, Federal Housing Administration

A home-equity line of credit works a lot like a credit card. The account has a set credit limit and the owner can usually borrow as much or as little as needed. Many credit lines charge a variable rate of interest, much like a credit card. The amount paid in finance charges depends on the direction of the prime rate.

However, unlike an unsecured revolving credit-card debt, the line of credit is almost always secured by home equity. For some homeowners, if a financial crisis hits and they can’t pay back the home equity line of credit (HELOC), they could lose their house.

Before applying for a line of credit, applicants need to make sure they are getting a good deal. That means checking up on their credit scores. In today’s financial environment, only consumers with excellent credit and substantial home equity will qualify for the best rates. The closer to a score of 700 you come makes you a better borrower in this marketplace. Generally, consumers need a credit score of 740 or higher to get the best deals. (more…)

search for : home-equity line of credit, prime rate, home equity, home equity line of credit, HELOC

Beautiful Wilkes County NC Timber Frame Home and Mountain Property.

MLS Number: 51166, List Price: $898,500

2 Bedrooms, 2 Baths, 2 half baths, 2 car attached garage, full basement, and a barn on 5 acres of land.

These terms are used to describe thousands of homes and yet some things just can’t be described, they have to be experienced. This is one of those homes that really has to be seen to be appreciated.

This majestic Timber Frame home of the Bob Timberlake genre is not just another house, it provides a feeling of home that is not about walls and floors and windows and doors. It creates a feeling of the flow between your outdoor and your indoor environment that is seamless. Everywhere you look there is a view. Everything you touch feels natural and beautiful in a way that cannot be described, only owned.

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

According to the Mortgage Bankers Association, interest rates fell last week. As a result, mortgage applications increased by a seasonally-adjusted 32.2 percent. In real terms, total mortgage applications shot up an astounding 8.7 percent compared to the same week a year ago. Now, near record low interest rates are making homes much more affordable.

Rates on 30-year fixed mortgages averaged 5.73 percent, down from 6.05% only the week before. That could explain why financings were 57.7 percent of mortgage applications last week up from 50.9 percent the week before. The typical homeowner plans to stay in their home about 10 years. That could explain why more people were interested in refinancing their mortgages last week than putting their houses on the market. (more…)

search for : Mortgage Bankers Association, 30-year fixed mortgage

Not enough cash to go around? It’s tempting to skip the biggest bill, which is typically your mortgage payment. However, foreclosure these days is fast-tracked process, which means you could find yourself receiving a foreclosure notice from your lender in as little as 60 days.

You need to call your lender. If you’ve already missed a payment and your lender has called you, you need to pick up the phone and return the call. Talking to your lender is the best way to stop foreclosure.

If you’re having trouble reaching your lender, call a HUD-certified housing counselor, who may be able to reach out to your lender on your behalf. The toll-free number is (800) 569-4287, or go online to the www.HUD.gov website. (more…)

search for : foreclosure

Treasury Secretary Henry Paulson is defending a plan brokered by the Bush administration to “freeze” mortgage rates for some subprime borrowers. By coordinating an alliance of lenders, servicers and investors, the Administration is hoping to prevent avoidable foreclosures.

Critics of the plan fall say that the rate-freeze plan is a start, but it’s a late one and not sufficient to address the size of the problem. Others point-out that adjusting mortgage contracts amounts to a bailout. That is, free-market principles say that those to take on risk should suffer the loss when bets go bad. (more…)

search for : Treasury Secretary Henry Paulson

Recently, the Financial Industry Regulatory Authority, Wall Street’s self-regulatory body, broadened their review of Wall Street’s role in the mortgage industry crisis. Just last month, the body sent letters to firms asking for documents, including marketing materials, a list of supervisory policies and loan making procedures.

Also requested are descriptions of how collateralized mortgage obligations were valued. Actions suggests that the regulators are looking into whether brokers sold these risky investments to individuals just as the market for related products was collapsing. (more…)

search for : Financial Industry Regulatory Authority, mortgage industry crisis, collateralized mortgage obligations

Reverse mortgage loans are experiencing a dramatic increase in popularity. Lenders and banks are beginning to realize this and are making a shift towards the reverse mortgage market.

A reverse mortgage offers an older homeowner the ability to tap into the equity of the home. A reverse mortgages works almost like getting a fixed-amount, monthly pension paycheck. But, instead of making a monthly payment to a bank, the bank writes a check to the homeowner and then adds that dollar amount to principle amount owed on the property.

First Midwest Bank offers two Reverse Equity Loan products; the Home Equity Conversion Mortgage (HECM) is available through the Federal Housing Administration and the HomeKeeper® Reverse Mortgage is available through Fannie Mae, a private company chartered by the U.S. government.

Freddie Mac recently released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage averaged 6.07 percent. That’s down from 6.17 percent last week. Last year at this time, the 30-year FRM averaged 6.18 percent.

The latest home sales data has sent mixed messages on the direction of housing activity towards the end of 2007. The mostly grave home sales reports came with a few light notes. While new home sales fell in November to the slowest pace since April 1995, existing home sales rose by a small margin to an annual pace of 5 million units. (more…)

search for : 30-year fixed-rate mortgage

Beautiful Wilkes County NC Log Home and Mountain Property.

MLS Number: 50863, List Price: $359,900

Bedrooms: 3, Full Baths: 2, Half Baths: 0, Est Total SqFt: 2600, Type/Style: Log Home, Area: Area 6, Middle School: Cntrl Wlks, High School: Wlks Cntrl, Construction: Log

Foundation: Combination, Roof: Metal Roof, Floors: Carpet/Hardwood/Tile, Garage/Carport: None-Garage, None-Carport, Interior Features: Master Bedroom, Main Level, Large Master Bedroom, Walk-In Closet(s), Hardwood Floors, Fireplace(s), Great Room, Exterior Features: Double Pane Windows, Wooded Lot, 1-5 Acres, Hot Tub, Subdivision: N/A, Lot Size: 2.47, Apx SqFt: 2600 – 2800 SF, Basement: None

Contact Elizabeth Carter, 336.973.5594 or Greg Stikeleather, Broker, 704.880.5247 or email eacarter@charter.net

click here for more information

Your first priority should be to know when and how much your adjustable-rate mortgage will change if and when a reset occurs. This one fact will help you determine whether or not you refinance your mortgage during 2008. A reset, by definition, means that the rate on an adjustable-rate mortgage goes through at least one adjustment. Those adjustments are called resets. In recent years, the most common kinds of adjustables have been 3/1 and 5/1 ARMs.

The section in your loan contract that discloses the rate’s change date should offer an explanation of how the lender will calculate the new rate. The ARM’s rate will be based on an index and a margin. The index is an independent interest rate that is widely known — the yield on the one-year Treasury note, for example, or the six-month London Interbank Offered Rate (LIBOR). (more…)

search for : adjustable-rate mortgage

With all the talk of the subprime market tending towards foreclosures, one might not think that now may still be the best time to refinance a mortgage.

In 2008, homeowners will consider refinancing because their adjustable-rate mortgages will hit their reset dates, sending rates and mortgage payments to the stratosphere.

To determine if your mortgage will encounter a reset, simply read your loan contract. In the section that discloses the rate’s change date, there should be an explanation of how the lender will calculate the new rate. The ARM’s rate will be based on an index and a margin. The index is an independent interest rate that is widely known, maybe the yield on the one-year Treasury note, or maybe the six-month London Interbank Offered Rate (LIBOR). (more…)

search for : subprime, adjustable-rate mortgage, reset date