The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) increased for only the second time since the end of 2009, edging upward to 6.01 percent at the end of the fourth quarter 2011, according to TransUnion.
Between the third and fourth quarters of 2011, all but 13 states experienced increases in their mortgage delinquency rates. On a more granular level, 64 percent of metropolitan areas saw increases in their mortgage delinquency rates in Q4 2011. This is the same percentage as found in Q3 2011, but up from Q2 2011 when only 21 percent of MSAs experienced an increase.
“There tends to be a natural seasonality, evident well before the recession, of higher delinquencies in the fourth quarter, perhaps explained by borrowers balancing holiday spending vs. debt payments,” said Tim Martin, group vice president of U.S. Housing in TransUnion’s financial services business unit. “On the economic front, house prices continued to deteriorate in the fourth quarter and unemployment remained stubbornly high. This combination leads to more negative equity in homes and reduced real personal income that can affect borrowers’ ability and willingness to pay their mortgages.
“The more encouraging news is that, when looking year over year, more homeowners are making their mortgage payments and the delinquency rate dropped more than 6 percent since Q4 2010. While it is certainly good to see the rate dropping, at this pace it will take a very long time for mortgage delinquencies to get back to normal.”
More info
The New York Times
Those who have issues with their mortgage lenders now have another place to take them: The Consumer Financial Read the full story
http://www.nytimes.com/2012/01/29/realestate/mortgages-on-troubleshooting.html?_r=1&ref=realestate
San Diego Union-Tribune
The number of loan servicers taking part in a state mortgage-aid program continues to grow roughly one year after its launch. The Keep Your Home California program now has 55 participating mortgage servicers, up from 21 in June.
Read the full story
http://utsandiego.com/news/2012/jan/10/more-lenders-added-calif-mortgage-aid-program/
In most cases, it is easier to qualify for a home mortgage by applying with another person – be it a spouse or partner, or even a close friend or sibling. But problems may arise if the other person’s credit score is less than stellar.
Read the full story
http://www.nytimes.com/2011/11/27/realestate/mortgages-when-a-co-borrower-has-poor-credit.html?_r=1&ref=realestate
Closing costs can increase the price of a home by as much as $10,000, sometimes more. Borrowers who are “cash-poor” can ask for assistance, or talk to their lender about a lender credit toward closing costs.
Making sense of the story
- Some lenders advertise that if borrowers agree to accept a mortgage interest rate from a quarter to a full percentage point higher than they would ordinarily qualify for, they can receive credit toward their closing costs.
- These mortgages are sometimes called no-closing-cost loans, though the term is misleading. The credit usually covers only fees charged by the mortgage broker or bank, like the loan origination fee, the underwriting expense, and the appraisal. That generally leaves title insurance, mortgage-recording taxes, insurance, and escrowed taxes to cover.
- The amount of credit depends on total closing costs and other loan details. Generally, for every one-eighth of a point increase in interest rate, borrowers receive a credit worth half a percentage point of the principal amount.
- While these mortgages can be helpful to some, borrowers should carefully review all the details. There are pluses and minuses to these loan types. A downside is the higher rate and monthly payments remain in place through the life of the loan.
- Doing a side-by-side comparison of loans with and without the credit can be helpful.
Read the full story
http://nyti.ms/svzEBM
