Not Paying the Mortgage, Yet Stuck With the Keys
Not Paying the Mortgage, Yet Stuck With the Keys
The Washington Post
A growing number of American homeowners are falling into financial limbo: They're badly behind on payments, but their banks have not yet foreclosed.
The backlog of seriously delinquent mortgages, which so far affects about 1 million borrowers, is a shadow over hopes for a rebound in the nation's housing markets. It masks the full extent of the foreclosure crisis and threatens to depress prices even further just as some parts of the country are hinting at recovery. For lenders, it could portend even more financial losses tied to the mortgage meltdown.
New-Home Sales Tumbled in May
The Wall Street Journal
WASHINGTON -- New-home sales unexpectedly fell in May as Americans afraid of losing their jobs stayed out of the market or settled for a cheaper house discounted by foreclosure.
Separately, demand for expensive goods made a strong, surprising increase in May, the third climb in four months, while a gauge of capital spending surged by the most in nearly five years.
Behind the Scenes, Fed Chief Advocates Bigger Role
The New York Times
WASHINGTON — During the debate over financial regulation, the Federal Reserve chairman, Ben S. Bernanke, has been surprisingly quiet. But behind the scenes, he has been a forceful proponent of giving the Fed more power, both defending his management of the economic crisis and arguing that more authority would help the agency act more decisively to reduce the chances of a recurrence, according to interviews with lawmakers and officials from the Fed, the Treasury and the White House.
Despite criticism by some lawmakers that the Fed failed to anticipate the problems that led to the crisis, Mr. Bernanke has told associates that such critics fail to recognize the extraordinary actions taken by the central bank over the last year.
U.S. mortgage applications climb from 7-month low
Reuters
NEW YORK - U.S. mortgage applications climbed last week from a seven-month low, the Mortgage Bankers Association said on Wednesday, adding to emerging signs that the three-year housing market collapse may be abating.
Demand for home loans rose after four straight weekly declines, as U.S. mortgage rates dipped and more borrowers applied to buy houses as well as refinance.
Franchise Tax Board: State’s New Home Tax Credit Going Fast
Business Wire
SACRAMENTO, Calif -- The Franchise Tax Board (FTB) announced today that the $100 million allocated by the state in new home tax credits will soon be gone.
As of June 17, 2009, FTB had received more than 9,800 applications claiming nearly $95 million. Because some of these applications are duplicates, revisions, or invalid, FTB plans to accept 12,000 applications. This will ensure enough valid applications will be available to allocate the full $100 million credit. However, FTB will only issue approved credit certificates until the $100 million is exhausted.
California Real Estate Commissioner Announces Issuance of Fraud Warning
Business Wire
SACRAMENTO, Calif. -- The California Real Estate Commissioner, Jeff Davi, announced today the issuance of a Consumer Alert by the California Department of Real Estate (DRE) warning consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert has been posted on DRE’s Web site at: http://www.dre.ca.gov/pdf_docs/FraudWarningsCaDRE03_2009.pdf and is also available in Spanish.
“With so many people struggling to stay in their homes, foreclosure rescue scams have risen dramatically,” DRE Commissioner Jeff Davi said. “The Consumer Alert will educate consumers and help homeowners avoid becoming victims to loan modification scams.”