The News Review:
- Gov’t considers changes to mortgage program
- CT FAMLIES helps to untangle mortgage mess for Connecticut homeowners
- Bay Area homeowners owe more than home’s worth
Gov’t considers changes to mortgage program
The Associated Press
The banking industry appears likely to favor options that don’t require an immediate reduction in principal, such as deferring payments, allowing partial payments and lowering the interest rate. In addition, the program may be unattractive to some borrowers because those who sell their properties must agree to share some of their profits with the government. Meanwhile, HUD also is revising the often-confusing disclosure forms that home buyers receive when they refinance a loan or buy a new house. HUD announced Wednesday that it completed an overhaul 1974 law requiring lenders to give a so-called “good faith estimate” of mortgage costs, including lenders’ payments to mortgage brokers. “It’s a big step forward in restoring trust and transparency between the industry and homeowners,” Preston said. The government, which originally proposed revising these forms more than six years ago and released its latest proposal in March, says the new forms — to be required starting in 2010 — should save consumers around $700 in closing costs. Preston acknowledged that industry opposition stalled similar government changes.
CT FAMLIES helps to untangle mortgage mess for Connecticut homeowners
Norwalk Plus Magazine
?These fairs proved to be very successful by providing homeowners with essential resources that will help them hold tight to their American dream,? Governor Rell said. ?We encouraged borrowers to come in and talk to the experts before they got in trouble. ?Governor Rell said about 45 percent of borrowers were able to refinance into the CT FAMLIES program before their adjustable mortgages reset into higher rates. Borrowers who are not eligible for the CT FAMLIES Program have been successful in negotiating repayment plans or modifications through the Hope Now Alliance. The Alliance, a coalition of counselors and lenders has assisted more than 12,500 Connecticut homeowners through a modification of their loan or the establishment of a repayment plan. ?Homeownership is one of the best investments anyone can make,? Governor Rell said. ?I want to assure the hard working men and women of this state that we will do all we can to help keep them in their homes and keep the Connecticut economy moving forward.
Bay Area homeowners owe more than home’s worth
San Francisco Chronicle, USA
“Unless you plan to buy, sell or refinance, it is more of an academic issue. But for people who do need to make financial decisions related to the equity in their homes, negative equity significantly constrains their choices. When there is any major financial stress to a household – death, divorce, job loss – it is much harder to rebound because it is harder to refinance, sell or get out from under the mortgage. (Being underwater) is highly correlated with foreclosure because it eliminates a variety of avenues people have for addressing financial stress. Locally, the underwater rate ranged from 7. 31 percent in San Francisco to 38. 63 percent in Solano County.
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