Some experts predict that home values will continue decline throughout this year, not picking up again until 2010. The Associated Press reports: “We do expect ’09 to be the down year, to be the bottom,” David Crowe, chief economist for the National Association of Home Builders, said during a news conference at the International Builders’ [...] [...more]
A new study reveals that a lot of Americans have very little equity in their homes – millions are “upside down” and actually owe more than their properties are worth. The Seattle Times reports: “First American CoreLogic’s study examined equity as of Sept. 30. It found that 18 percent of all mortgaged properties in the [...] [...more]
Since home equity lines of credit have become so difficult, there’s been an increase of companies offering “HELOC alternatives.” Generally, these are just your average personal loans aimed at creditworthy customers. First Again is one such company. Their recent press release explains: “According to Gary Miller, cofounder and CEO of FirstAgain, an emerging online consumer [...] [...more]
This has been the big question of the past few months. Some financial advisers suggest that borrowers cash out their HELOCs to protect against possible freezes. But, others are suggesting that panic-stricken withdrawals are a bad bet. KSN News reports: “If they are paying interest just to hold that money to me that’s counterproductive,” said [...] [...more]
If you’re relying on a home equity line of credit to keep you afloat during this economic crisis, you may want to reconsider that plan. The Boston Globe explains: “Some families don’t have any cash on hand, but are relying on a home equity line of credit (HELOC) if times get tough. The only problem [...] [...more]
Homeowners in almost every state are feeling the effects of the home equity crisis. Those who took out large HELOC loans are now struggling with upside down mortgages and the possibility of foreclosure. But, borrowers in one state are less exposed. Thanks to more strident state laws, fewer Texans are facing these problems. The Houston [...] [...more]
The mortgage crisis has created an entire new industry: the foreclosure review company. These organizations review clients’ loan documents looking for mistakes. If a mistake is found (which apparently is pretty commonplace with high-risk California loans), the client can use it as leverage to stop the foreclosure proceedings. One such company, CancelYourForeclosure.com, explains their work: [...] [...more]
Home equity line customers may soon be enjoying a decreased interest rate, if market rumors come to fruition. The Associated Press reports: “Many believe the Fed will ratchet down a key lending rate to banks — now at 2 percent. In turn, the prime lending rate — now at 5 percent — for certain credit [...] [...more]
What a week. There has been some unprecedented instability amongst major home equity lenders during the past few days. Talk of a bailout, stock plunges, and bank failures have topped the headlines. Now it’s looking like only a handful of major HELOC lenders will come out of this. The next time you go to take [...] [...more]
Over the past couple months, I’ve posted quite a bit about Regulation Z and home equity lender’s responsibilities. HELOC lenders can freeze clients’ credit lines. But, they cannot do so without proper legal cause. The Washington Post recently reports: “This summer, both the Federal Deposit Insurance Corp. and the Office of Thrift Supervision issued guidance [...] [...more]
