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Mortgage Deliquencies up for the 8th Straigh Quarter

http://news.yahoo.com/s/ap/20090303/ap_on_bi_ge/transunion_mortgage_delinquencies_1

CHICAGO – The number of people who were late making their mortgage payments shot up 53 percent in the fourth quarter of 2008 from the same period in 2007, according to data provided by TransUnion LLC.

The credit reporting agency said its database shows delinquencies — or the percentage of mortgage holders at least 60 days behind on payments, considered a precursor to foreclosure — jumped to 4.58 percent nationally, from 2.99 percent for the 2007 fourth quarter.

That was 16 percent above the 3.96 percent rate seen in the third quarter, TransUnion said, and marked the eighth straight quarter that deliquency rates rose.

“It’s about what we were expecting,” said Keith Carson, senior consultant in TransUnion’s financial services group. But while not unexpected, the huge jump from last year was still “alarming,” Carson said.

TransUnion, best known for its consumer credit rating data, projects delinquency rates could reach as high as 8 percent by the end of the year. The company isn’t predicting that the climate will improve until the middle of 2010.

The states that have shown the highest delinquency and foreclosure rates remain the same. Florida is on top, with a 9.52 percent rate for the fourth quarter, while Nevada is second with 9.01 percent. Arizona came in at 6.93 percent and California right behind at 6.88 percent. Carson said there is a glut of homes in those states, which is combining with increasing economic woes and declining home values to keep the rates high.

North Dakota, at 1.21 percent, remains the state with the lowest delinquency rate.

The figures are culled from TransUnion Trend Data, which consists of 27 million consumer records randomly sampled each month from the credit reporting agency’s national consumer credit database.

While the government has launched efforts to stem foreclosures, those moves are not yet reflected in data, Carson said. Banks are also trying to work with consumers to reduce problematic mortgages, but falling home prices are feeding the problem, he said. “We do know from everything we’ve found out in the last year is that the primary driver on mortgage defaults is negative equity,” he said. When homeowners owe more on their mortgages than the houses are worth, data show a higher likelihood that consumers will simply walk away, he said.

California is the state with the highest average mortgage debt per borrower, at $356,421. West Virginia has the lowest, at $96,243.

Lenders are trying to address some negative equity issues with refinancing, but Carson said data shows the rate of redefault on modified mortgages “has been very high, primarily because of negative equity.”

Find Secrets to Refinancing your Upside Down Mortgage ……

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Refinance an Upside Down Mortgage”

Upside Down Mortgage: Obama’s New Rescue Plan

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Refinance an Upside Down Mortgage”

“Housing Secretary Shaun Donovan stressed that homeowners don’t need to be delinquent in order to get help.” – This comment has to be the best news for many homeowners out there who need the help but also want to keep their great credit!”

This quote about says it all to most people.  It came from a recent article released by the Associated Press (AP).

This answers the most common question I get when “how to handle an upside down mortgage” and “solutions to an upside down mortgage”.

The rest of the article can be found here at Upside Down Mortgage Solutions.

Citigroup and Bankrutcy Judges Join Forces to Save Homeowners from Foreclosure

Learn more about Refinancing an Upside Down Mortgage- Get Your Free Report Here

News came out today that may help many homeowners who are facing problems with their mortgage.  Letting your house go because the home is upside down and you need help start with my free report and if that only wets the appetite then move on to my free video series on Refinancing an Upside Down Mortgage

You can also find help from my friend who is the Sacramento Short Sale Agent I recommend

Democratic lawmakers reached an agreement with Citigroup Inc. on a plan to let bankruptcy judges alter loans in an effort to prevent homes from going into foreclosure. Other lenders are expected to follow suit.

Known as “cramdown,” the rewrite would let bankruptcy court judges erase some mortgage debt to help bankrupt homeowners better handle their payments, subject to strict conditions.

The legal reform would help “millions of families save their homes,” said senators Richard Durbin of Illinois, Charles Schumer of New York and Christopher Dodd of Connecticut.

Michigan Democratic Rep. John Conyers has introduced the mortgage bankruptcy measure in the House of Representatives.

Under the terms of the reform as agreed, only mortgages entered into prior to the date of enactment of the bill would be eligible for the treatment, the senators said.

Homeowners would have to certify that they have tried to contact their lender before filing for bankruptcy, they said.

Only major violations of the “Truth in Lending Act” would invalidate creditor claims on bankruptcy, they said.

Schumer said his office has contacted top bankers nationwide and some said they would be supportive.

Officials at other top banks — including Wells Fargo (WFC.N), Bank of America (BAC.N), SunTrust (STI.N) and JPMorgan Chase & Co (JPM.N) — were contacted by Reuters but had no comment.

This latest adjustment to Bankruptcy law will help homeowners avoid any possible foreclosure and allow for someone other than the bank to make adjustments to the toxic mortgages that have plagued homeowners facing foreclosure.

Learn more about Refinancing an Upside Down Mortgage– Get Your Free Report Here

Stop Foreclosure: Filing Chapter 13 Bankruptcy may help.

Before you dive in and read to information below I want to share a few things with you.

This post has been up here a while and in that time I have found an even better way to provide information to those people facing foreclosure.  

After you have read through this article you will need more help!  To get that help read this EBook and you will be well on your way to making the best decisions possible.

In bankruptcy Chapter 13 mortgage foreclosure is either stopped or at least temporarily avoided. Here’s how.

First, just in case you are not familiar with a Chapter 13 bankruptcy, it is a bankruptcy court approved payment plan where the debtor (the person filing bankruptcy) pays a bankruptcy trustee each month and then the trustee pays the debtor’s creditors.

There are several aspects of a Chapter 13 bankruptcy that work to help people facing mortgage foreclosure. The first aspect is actually applicable to all bankruptcies. It is called the “automatic stay”.

By law, whenever anyone files bankruptcy, regardless of the type of bankruptcy, there is an immediate “automatic stay” (automatic temporary stopping) of most civil proceedings against the person filing bankruptcy. What this means is that if someone is facing mortgage foreclosure and the person files bankruptcy, the mortgage lender has to immediately stop its’ foreclosure action until it gets permission for the bankruptcy court to proceed.

In a Chapter 13, the bankruptcy court will not lift the “automatic stay” and grant the mortgage lender permission to proceed with a foreclosure until the debtor (the person filing bankruptcy) fails to make his payments to the bankruptcy trustee. As long as the debtor pays the monthly payments to the trustee and pays his regular mortgage payments, the “automatic stay” will remain in force and the mortgage lender can not do anything.

The second aspect of a Chapter 13 that works in favor of people facing foreclosure is that it allows a debtor to pay mortgage arrearage over time, normally 3 to 5 years. In most foreclosure cases, a person has not paid his monthly mortgage payment for several months and the mortgage lender demands full payment of the delinquent monthly payments (arrearage) in lump sum before the lender will consider stopping foreclosure. Most people cannot pay the lump sum.

In a Chapter 13 bankruptcy, a debtor can pay the arrearage over time. He does not have to pay it all at one time. Spreading the lump sum over time means paying smaller monthly payments until the total arrearage is paid. A creditor can object to the amount to be paid each month towards the arrearage, but once the bankruptcy court approves the payment plan, the creditor can not do anything except take the payments.

A third aspect of a Chapter 13 bankruptcy that helps people facing mortgage foreclosure is that unsecured creditors may be paid a portion or all of what is owed to them. What this is really doing is reducing the amount of debt that a person has to pay back each month. By paying unsecured creditors less each month, there is more money available with which to pay a secured creditor such as a mortgage lender. Therefore, it should be easier for a debtor to pay his monthly mortgage payment.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

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 “Refinancing SECRETS for an Upside Down Loan that Banks Don’t Want You To Know because it will Cost them THOUSANDS of Dollars!”

JUST SEND ME AN EMAIL with “Refi Secrets for Upside Down Loans!” as the subject to Brent@brentlane.net

Stop! Did you know that bankruptcy was created to give people a fresh start? Find out more at bankruptcy information. And click here for more insights on Chapter 13 bankruptcy. Article Source: http://EzineArticles.com/?expert=Steve_Bingman

Upside Down on your Mortgage

Read my most recent article about

Upside Down Mortgage Right Side Up

I just read an article on SmartMoney.com and they gave the obvious options for people who owe more than their home is worth.  Those of you who have visited my site before know that you have options when it comes to being upside down.  Loan modification and doing a short sale are two very good options but leaving out one major idea could be detrimental to some  homeowners.

Refinancing can actually still be done even if you owe more than your home is worth but you really should have a first and a second mortgage.  I have written about this in a few articles so look here and here for more details.  Best of luck to those who are in trouble, never give up and fight to the end to same your home because you will be glad you did in the long run.    If you need further information or want help with a specific question please comment below or email me at brent@brentlane.net

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“Refinancing SECRETS for an Upside Down Loan that Banks Don’t Want You To Know because it will Cost them THOUSANDS of Dollars!”

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