Florida Loan Law

Slow Start to U.S. Plan for Modifying Mortgages

admin — Thu, 14 May 2009 20:07:15 +0000

The NY Times says Washington is off to a slow start:

So far, two months after the program went into effect, about 55,000 homeowners have been extended loan modification offers, according to a senior administration official. At the same time, foreclosures continue apace. RealtyTrac reported Wednesday that foreclosure filings reached 342,000 last month, up 32 percent from April 2008. Moody’s has estimated that more than 2.1 million homeowners will lose their homes this year.

Because of the size and complexity of the modification program, the administration has only recently assembled most of the pieces. In late April, officials fleshed out their plan to modify or forgive second mortgages — one of the big stumbling blocks in modifying primary mortgages — and provided more details on the Hope for Homeowners program, for borrowers who owe more than their homes are worth. Congress is close to acting on legislation to protect mortgage servicers from potential lawsuits from investors, while also expanding the Federal Housing Administration’s ability to modify loans.

Obama Loan Modification Plan Expands

admin — Thu, 14 May 2009 20:04:20 +0000

Treasury Secretary Tim Geithner announces new steps by the Obama Administration aimed at helping troubled homeowners, reports CNBC’s Diana Olick; with Tanya Acker, attorney/Democratic strategist.

“If a modification is not possible, we are also announcing steps to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future,” Geithner said. “These are critical steps in stemming the foreclosure crisis and stabilizing the housing market.”

Homeowners who do not qualify for a loan modification, their lenders could receive up to $1,000 if they allow the home to be sold in a short sale. To sweeten the pot for homeowners, a $1,500 carrot will be offered for relocation expenses.

Slow Start to U.S. Plan for Modifying Mortgages The NY Times says Washington is off to a slow...
Foreclosure Prevention Plan Expanded to 2nd Mortgages The Obama administration unveiled an expansion of its $75 billion...
Loan Modification What is a Loan Modification? A loan modification is a...

Related posts brought to you by Yet Another Related Posts Plugin.

Home sales up in Jacksonville and statewide

admin — Tue, 12 May 2009 19:59:47 +0000

Existing single-family home sales were up 7 percent in Jacksonville during the first quarter 2009, and the statewide numbers were even better. Condominium sales in Jacksonville dropped 9 percent, according to the Florida Association of Realtors.

Some 2,231 single-family homes were sold during the first quarter compared to 2,080 sold during the same period 2008. Median sales prices dropped 17 percent in the Jacksonville area to $151,800. A total of 235 condos sold during the first three months of 2009 in Jacksonville compared with 258 during the same period last year. Median sales prices for condos were down 13 percent in Jacksonville, to $125,700.

Single-family homes statewide were up 25 percent to 31,412 and the median sales price dropped 30 percent to $141,000. Statewide condos sales increased 19 percent to 10,143 and median sales price dropped 38 percent to $110,100. The statewide numbers mark the third consecutive quarter of growth for single-family sales and the second consecutive quarter of growth for condo sales.

Should the Government Subsidize Mortgage Modifications?

admin — Tue, 12 May 2009 19:37:36 +0000

Should the government be bribing mortgage servicers to modify loans and reduce payments?

Under the current housing plan, the federal government pays for one-half of the cost when lenders reduce mortgage payments to 31 percent of borrower income from 38 percent. When this plan was revealed, I was relieved because it seemed so much more reasonable than some of the extreme solutions being peddled, but a new paper by three Federal Reserve economists and a co-author has led me to reconsider my views.

There are two popular rationales for government action to increase mortgage modifications. One argument for supporting loan modifications is that foreclosures are bad for society, perhaps because they tear neighborhoods apart, and that the government should do all it can to reduce foreclosures. A second argument is that the securitization of mortgages broke the loan renegotiation process, and the government needs to fix the problem. The new Federal Reserve paper doesn’t address the first rationale for intervention, but it does leave the second argument in intellectual tatters.

Fla. budget negotiators OK increased fees

admin — Wed, 06 May 2009 14:36:55 +0000

TALLAHASSEE, Fla. — Motor vehicle registration, driver license and court fees will be going up and tobacco taxes will increase, but Florida also will join every other state in waiving court filing fees for poor people through a series of budget conforming bills approved Tuesday by top House and Senate negotiators.

Meanwhile, Gov. Charlie Crist at a town hall meeting in Pensacola said he probably will sign into law the $1-a-pack increase in the state’s cigarette tax, now $34 cents. Crist initially had opposed it.

“I’m still not warm and fuzzy about it, but I understand and respect the process that our members of the House and Senate went through to get there, and I’m going to be respectful of it,” Crist said after returning to Tallahassee.

Foreclosure Prevention Plan Expanded to 2nd Mortgages

admin — Wed, 29 Apr 2009 14:02:39 +0000

The Obama administration unveiled an expansion of its $75 billion foreclosure prevention plan yesterday, providing new subsidies to mortgage lenders and investors.

Under the expanded plan, some homeowners could see their payments fall significantly and the interest rate on their second mortgage pushed down to 1 percent. The announcement comes nearly two months after the administration launched the housing program, called Making Home Affordable. While officials said some borrowers have already received help, the foreclosure rate is rising and it could be months before the program begins to have an impact.

The new efforts address, in part, criticisms from consumer advocates that the administration’s housing plan did not go far enough and that borrowers still face too many barriers to receiving help.