New short-sale program offers relief for underwater homeowners

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. …

Continue reading ‘New short-sale program offers relief for underwater homeowners’ »

Understanding Foreclosure

Understanding Foreclosure It is an unfortunate commentary, but when economic activity declines and housing activity decreases, more real property enters the foreclosure process. High interest rates and creative financing arrangements also are contributing factors. When prices are rapidly accelerating during a real estate “bonanza”, many people go to any lengths available to get into the …

Continue reading ‘Understanding Foreclosure’ »

What you should know about balloon loans

A balloon mortgage is one on which the outstanding balance is due at some point before amortization has paid off the balance in full. Aside from the repayment obligation, balloon loans are identical to standard fixed-rate mortgages (FRMs). For example, if a five-year balloon loan for $100,000 is at 5 percent for 30 years, the …

Continue reading ‘What you should know about balloon loans’ »

6 truths about no-cost mortgages

Have you heard about no-cost mortgages?  Here are the pros and cons about shopping for one in this housing market: While buyers avoid overcharges, they also pay a higher interest rate “Is shopping for a no-cost mortgage a good strategy in today’s market?” No-cost mortgages are relatively easy to shop because of their simplicity, and …

Continue reading ‘6 truths about no-cost mortgages’ »