The News Review:
- Monday editorial: Homeowners rescue lite
- Debt relief act has its limits
- reportonbusiness.com: Your Money
- City breaks deal over garage without permit
Monday editorial: Homeowners rescue lite
St. Louis Post-Dispatch – Apr 6, 2008
LOUIS POST-DISPATCH It’s hard to think of $21 billion as pocket change. But as a fix for the subprime mortgage mess, $21 billion barely will buy a Band-Aid. Nevertheless, the Senate seems determined to push ahead with this “rescue lite” for struggling homeowners, builders, bankers and investors. Only half the amount will find its way to homeowners with subprime debt. The bill contains $10 billion in tax-free borrowing authority for state housing agencies. They may use it, if they choose, to refinance subprime mortgages for low- and moderate-income homeowners… Only half the amount will find its way to homeowners with subprime debt. The bill contains $10 billion in tax-free borrowing authority for state housing agencies. They may use it, if they choose, to refinance subprime mortgages for low- and moderate-income homeowners. This is good as far as it goes, but it won’t go far. To get an idea of the size of the mess, some on Wall Street expect investor losses on subprime securities to reach $500 billion, much of it through foreclosures. The bill also includes an extra $100 million for counseling services to help struggling homeowners negotiate work-outs with mortgage servicers.
Debt relief act has its limits
HeraldNet – Apr 6, 2008
The sticky point, however, is that refinances made between the time of purchase and foreclosure could muddy the waters. For example, if your refinanced your loan and took cash out of the property to pay for cars, vacations and other real estate, the amount of your loan when it went into foreclosure could have been far greater than the original debt. The relief limit would stop at the original debt. However, a refinance to the amount of the original debt would qualify. “You should look at this debt as purchase money debt, unless the refinance money was expressly used to improve the primary residence,” said Joe DiPaola, real estate broker, lawyer and former executive with Coldwell Banker. The new law is a bit different than the guideline for mortgage interest deductions — a write-off that many taxpayers exceed… However, a refinance to the amount of the original debt would qualify. “You should look at this debt as purchase money debt, unless the refinance money was expressly used to improve the primary residence,” said Joe DiPaola, real estate broker, lawyer and former executive with Coldwell Banker. The new law is a bit different than the guideline for mortgage interest deductions — a write-off that many taxpayers exceed. You can only deduct interest on the original amount of the loan, plus $100,000 of home equity debt. For example, let’s say you purchased your home 10 years ago for $100,000 and took out a loan for $80,000. Since then, you have paid the loan down to $20,000. The house is now worth $275,000 and your oldest child needs college tuition.
Related: Middle East promises much for investors but at a higher risk
reportonbusiness.com: Your Money
Globe and Mail – Apr 6, 2008
mortgage applications fell for a third consecutive week, reaching its lowest level in over six years as demand for home refinancing loans plunged, an industry group said Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended May 30 dropped 15. The full text of this article has 374 words.
Related: Real Estate – An investment option for the Prudent Investor
City breaks deal over garage without permit
San Francisco Chronicle – Apr 6, 2008
Q: Can I purchase a share of my mom’s house? She wants to retain some ownership. She owes $80,000 on the house. Can she add my name to the deed? I would then refinance so we’d be responsible for the mortgage. Or could we both be on the mortgage? We’d own the property jointly with joint rights of survivorship. I would be making the mortgage payments. We would both have the right to live there. A: That sounds like a good idea, so long as you can afford to get the mortgage loan.
[...] Monsanto profit jumps, but Wall Street wants moreEconomic Times – Apr 3, 2008Monsanto said its expects ongoing earnings this year in a range of $3. 25 per share, affirming its own forecast made just a week ago that set expectations for growth of well over 50 percent compared with 2007 ongoing earnings. But the Wall Street consensus forecast rose to $3… Net income for Roundup and other glyphosate-based herbicides totaled $982 million in the quarter, up from $530 million a year earlier. Other key drivers for the quarter were a 47 percent gain in net sales of corn seed and trait products and a 22 percent jump in soybean seeds and trait products. Quarterly results were also favorably impacted by 23 cents per share from the settlement of Monsanto’s claims in conjunction with the emergence from bankruptcy of chemicals company affiliate Solutia Inc. The company said it now expects its free cash flow for fiscal year 2008 will be $1. 3 billion, down from the $1. 4 billion it had indicated a week ago, reflecting planned capital expenditures of up to $196 million over the next 18 months at its glyphosate manufacturing facility in Luling, Louisiana. The investment will increase global production capacity, the company said.Related: Monday editorial: Homeowners rescue lite [...]
[...] Get a steal of a deal at real estate auctionsMSNBC – Apr 4, 2008That?s 223,651 homes that received foreclosure filings last month. Nevada, California and Florida have the highest foreclosure filing rates in the nation. In the past year, 1,000 Florida homes have been auctioned. Five hundred homes will be auctioned off in Florida next week in one of the largest auctions in history, which will last for six days.Related: Debt relief act has its limits [...]