Where do we stand on the whole “underwater” situation?
It’s not good; in fact, it’s getting worse.
You know what they say, “No news is good news.” Unfortunately these days, no news tends to mean it’s just old news.
Refinancing could all but disappear — act now!
I want to examine three separate issues that could possibly kill refinance demand entirely: Underwater homeowners, a requirement in the proposed definition of a qualified residential mortgage (QRM) and mortgage rates.
Underwater borrowers = No refis
Is home equity lending making a comeback?
For certain lenders in certain parts of the country the answer is yes, reports AnnaMaria Andriotis of SmartMoney.com. That certainly sounds somewhat surprising considering homeowners across the country have seen their home’s equity stripped by falling home prices. Also, with many lenders still employing strict lending standards on first mortgages, it’s almost odd to hear that others are moving back into lending second mortgages.
Yet as I mentioned earlier, the number of lenders who are increasing their home equity lending isn’t that substantial. They tend to be regional banks that deal in areas of the country much less affected by the downturn: Read the rest of this entry »
Exactly what is a private hard money lender?
Hard money, or private lending, is gaining popularity as financing remains tight. But borrowers need to know exactly how it works before they sign for a loan.
Private hard money lenders are often the only alternative when banks and brokers are unwilling to lend. In today’s economy, they are understandably in high demand.
Millions of homeowners afraid to sell
Ever since home prices and mortgage rates began falling, we’ve been saying that this is a buyer’s market. Despite the added lending restrictions on today’s borrowers, it still is a buyer’s market. Weak demand, low prices and already-bloated inventories of homes for sale will prevent it from becoming a seller’s market for some time to come.
According to Zillow.com’s Homeowner Confidence Survey, millions of borrowers are just itching to sell their homes, but are too afraid to because of market conditions: Read the rest of this entry »
The Pros & Cons of Walking Away from your Mortgage
Allow me, if you will, to quote one of America’s great philosophers, Mr. Kenny Rogers: “You gotta know when to hold ‘em, know when to fold ‘em, know when to walk away, know when to run.”
What in the world does Kenny Rogers have to do with mortgages and homeownership? Well, nothing. However, Kenny’s advice is so timeless because of its ability to relate to nearly any tough decision that has its pros and cons. So those words of wisdom aren’t strictly meant for the riverboat gambler, they can also pertain to (here comes the mortgage connection) the millions of underwater homeowners in U.S.: you have to know when to hold onto to what you got, and you have to know when it’s the right time to walk away.
In my feature article on HSH.com, “The Pros and Cons of Walking Away from your Mortgage,” I tried to take a similar approach, offering homeowners several reasons why they should hold onto their homes and several reasons why it may be time to walk away: Read the rest of this entry »
New Articles on HSH.com
It’s certainly not uncommon for homebuyers and homeowners to have a lot of questions, especially in today’s ever-changing market. Perhaps you’ve asked yourself one of the following questions:
Did my mortgage lender break the law?
Is it possible to refinance my second home in today’s volatile market?
