Archive of posts tagged borrower

New short-sale program offers relief for underwater homeowners

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One of the federal government’s most-important financial relief efforts for underwater homeowners started operating Nov. 1.  Traditionally short sales, where the lender agrees to accept less than the full amount owed and the house is sold to a new purchaser at a discounted price, are associated with extended periods of delinquency by the original owner. …

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How Much Should You Borrow for a Home Loan?

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According to a 2011 report issued by CoreLogic, roughly 23.1 percent of mortgaged homes were underwater – worth less than the amount mortgaged – in the fourth quarter of 2010. If you are one of the lucky 75 percent of homeowners with some equity, then you might be considering taking out a loan in order …

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Risk of Strategic Default Rising in Low-Risk Areas

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Negative equity remains one of the biggest challenges for the housing market. For some borrowers it can become their rationale to stop making mortgage payments and intentionally default on the loan. The risk of such strategic default is rising among loans that have “always performed,” according to the credit analysts at Moody’s Analytics. They say …

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Servicers Expand to Assist Distressed Homeowners

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With delinquent mortgages at unprecedented levels, sheer market conditions command a staff the size of a small army dedicated to working with distressed borrowers. Servicers have added thousands to their loss mitigation teams over the past few years and most are still recruiting. Wells Fargo has hired and trained 10,000 additional people to work with …

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