Here’s a new tactic we haven’t seen before: mortgage originator AmTrust called blogger BeThisWay and offered her $50 to voluntarily close her home equity line of credit (HELOC), possibly in response to the recent class action lawsuit against them for illegally closing HELOCs. She writes, “Well, I’d like to keep my HELOC. But I have to figure out AmTrust’s next move. What will they do if not enough people voluntarily surrender their HELOCs? Are cancellations next? Am I better off taking the $50 now, or waiting, hoping they don’t cancel it?”
mortgages
Chase and Citi Shut Door On Mortgage Brokers
By 4.6.09
You’re cut off! JPMorgan Chase and Citi announced they’ll no longer accept mortgages submitted by mortgage brokers. The move seems to be a way for the banks to exercise more control over the loans they undertake. At first blush, this sounds like a good thing, for banks to be looking their borrowers in the eye, a throwback to the days when credit was earned instead of splooged out like candy in a parade (days epitomized in this 1950’s short, “The Wise Use of Credit,” posted inside…) On the other hand, it could be more just a way to snag market share and shut out the competition, which can lead to higher interest rates, borrowing costs, fees, and lower service.
"Iceland Is No Longer A Country, It's A Hedge Fund"
By 4.6.09
Vanity Fair’s April cover story is on Iceland’s banking massacre — detailing how the the tiny, well-to-do country committed “one of the single greatest acts of madness in financial history.”
Report: Loan Modifications To Date Haven't Been That Effective
By 4.4.09
Fewer than half of loan modifications made at the end of last year actually reduced borrowers’ payments by more than 10 percent… [while] nearly one in four loan modifications in the fourth quarter actually resulted in increased monthly payments.
Fannie And Freddie Can Foreclose Again
By 4.3.09
Fannie Mae and Freddie Mac can foreclose on people’s houses again. There was much fanfare when they were banned from doing so back in December, but not a peep on March 31st when the moratorium ended. Funny, that. [The Washington Independent] (Photo: Colin Tobin)
By 4.2.09
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Mortgage rates are at a record low of 4.78%, according to Freddie Mac. [Bloomberg]
New York Times: Walking Away From Your Mortgage, Not So Bad After All
By 3.22.09
Great news, distressed homeowners! If you aren’t eligible for the President’s homeowner assistance package and can’t negotiate a better deal on your mortgage, the New York Times says that turning in the keys and leaving your home may not be the end of your financial world. The Times mapped out a guide for dealing with the various players controlling your mortgage…
Battle Of The Most Hated Companies: Countrywide Sues AIG
By 3.20.09
Last year’s Worst Company in America winner, Countrywide Home Loans, has sued AIG for not paying their claim on losses from failed real estate loans that they had insured with the company.
Giant Bee Swarm Overtakes Foreclosure
By 3.19.09
A shit-ton of bees have infested this foreclosed home in Florida, creating a hive the size of a small child on the exterior, and chasing and harassing the neighbor’s daughter. See, that’s them in this picture. According to the article, bees and raccoons are infesting foreclosures across Florida. Nobody can find the owners or banks that are supposed to own and take care care of them. [More]
Federal Reserve Chairman Ben Bernanke's Childhood Home Sold After Foreclosure
By 3.16.09
Federal Reserve Chairman Ben Bernanke is from a small town in South Carolina called Dillon — a town where the impact of the economic meltdown is being felt keenly.
HSBC, Wells Fargo Accused Of Racism In Mortgage Issuing
By 3.15.09
The NAACP this week filed a class action suit accusing Wells Fargo and HSBC of charging unfairly high interest rates to African American homeowners with high incomes and high credit scores. The banks were quick to slap down the charges as “totally unfounded and reckless,” even in the face of convincing evidence from the NAACP.
Citi "Homeowner Helper" Site Merely Potemkin Village?
By 3.10.09
Did Citi set up its “homeowner helper” site to comply with Obama’s mortgage assistance programs, but then not actually attach it to any humans that will help homeowners? After inputting his info on the site, Citi told reader CoarseLive to schedule an appointment with a representative. No one ever called him. When he tried calling Citi directly, multiple agents told him they had no idea what he was talking about, and they hung up on him, again and again. His story, inside…
1 In 8 US Households Either Late Or In Foreclosure
By 3.5.09
Here’s your daily depressing mortgage news — as employers shed jobs mortgage delinquencies are rising — intensifying and spreading the mortgage crisis.
By 3.4.09
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Looking for a mortgage? You might want to consider an FHA loan. The New York Times says, “The Federal Housing Administration used to be known as a place for low-income borrowers with tarnished credit histories. But now, it has become a destination for borrowers whose credentials are respectable, but not stellar.” [NYT]
By 3.2.09
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6 months was enough for Freddie Mac Chief Executive Officer David Moffett. He’s outta here. [Portfolio]
What Happens To This Stuff Left In A Foreclosed House?
By 2.26.09
What happens to all the stuff left inside a foreclosed house when the ex-owners jet? The bank contracts these guys to haul it all away to the dump in what is called a “trash out.” Here’s a short video following a crew of junk chuckers. It’s amazing what people leave behind, including photos and computers.
Make The Bank Prove It Really Owns Your Mortgage Before You Let Them Toss You Out
By 2.18.09
We’ve written about this before, but as more and more people face foreclosure (last year’s foreclosures totaled 2.3 million, according to the AP) its a good time to remind people of this strategy.
California Man Barricades Himself Inside Foreclosed Home
By 2.17.09
Carson, California has over 1,100 homes in foreclosure according to its mayor, and barricaded inside one of them was Frank Torres, an oil-refinery worker who lost his home to foreclosure after work was scarce last year. Now he’s working full-time and he wants to buy his house back — but he says the bank won’t listen. That’s why he painted a message on the roof of his former home and held the building hostage for 5 hours.
