Mortgage Rate News

Yesterday in remarks to Congress, Ben Bernanke said the economy is in a “freefall.” While he didn’t want to talk much about a recession, it appears that the writing is on the wall, no matter how much “economic stimulus” we get.

One of the more distressing parts of Bernanke’s address yesterday was the prediction that some of the smaller banks in the US may fail. He assured Congress (and by extension, the public) that larger banks would be fine. After all, they have received cash inflows and bailouts from a number of sources recently. Mortgage lenders could be among those “small” banks that fail.

In these times, it is important to carefully plan your financial path. Consider large expenses, especially if you have a resetting mortgage, and decide how you can make your financial situation more secure. The important thing is to not panic, and to look at your options. Before the situation gets dire for your personal finances.

Tags: recession, Ben Bernanke, home mortgage loan, mortgage loan blog,
mortgage lenders, resetting mortgage, personal finances

With the news that foreclosures are up across the country, it was only a matter of time before someone famous faced foreclosure. Michael Jackson is facing foreclosure on his Neverland Ranch. Reuters reports on the famous foreclosure possibility:

“You are in default of a deed of trust …,” Jackson was told in the five-page filing, according to a copy of the document published by FoxNews.com. “Unless you take action to protect your property it may be sold at a public sale.”

According to the documents, if Jackson fails to pay the outstanding balance, estimated at $24.5 million, Neverland would be sold to the highest bidder at a public auction on the courthouse steps.

This situation offers further proof that just about anyone can fall through poor financial decisions, including getting into a mortgage that may not be affordable. Michael Jackson has until March 19 to pay the balance on his Neverland mortgage.

Another celebrity who could be facing financial trouble is Britney Spears.

Tags: Michael Jackson, Michael Jackson foreclosure, home mortgage loan, mortgage blog,
Britney Spears, foreclosure Neverland Ranch, foreclosures

Even though January foreclosures are up 8 percent from December, and up 57 percent from January 2007, the month-to-month spike from a year ago was higher. For some, this means that government mortgage programs — and threats of more to come — may be helping to end the foreclosure specter.

However, questions remain. Inman News points out that while some foreclosures may be forestalled for now, the inevitable could still take place down the road:

“It could be that some of the efforts on the part of lenders and the government — both at the state and federal level — are beginning to take effect. The big question is whether those efforts are truly helping homeowners avoid foreclosure in the long term or if they are just temporarily forestalling the inevitable for many beleaguered borrowers,” he added.

Most of the efforts made so far are designed to be temporary, and that means that unless a fundamental change is made, the foreclosures will eventually happen. Some argue that the “fixes” we are seeing now are no more than an extension to keep beleaguered homeowners “alive” to make a couple more years of payments.

Another problem is the growing number of homeowners that see foreclosure as a smart financial planning decision as they simply walk away from their house payments.

Tags: government mortgage programs, foreclosures, home mortgage loan, mortgage loan blog,
January foreclosures, mortgage fixes, foreclosure financial planning