FHA Book

All the Foreclosures that are Fit to Print

The rising ARM rates have spurred another story in the New York Times about the alarming number of foreclosures cropping up across the country. This article focuses on Atlanta as the first in what may be a long line of states withy sky rocketing foreclosure rates. There is also a handy graph illustrating the rising home prices in the metro Atlanta area.

Refinancers Beware!

Here is more proof that borrowers facing foreclosures are in desperate need of a safe and reliable way to refinance their homes. This article in the Business Section of the New York Times highlights a new danger facing consumers headed for foreclosure:

The schemes take various forms and often involve promises to distressed homeowners of cash upfront, free monthly rent and a chance to retain their houses in the long run. But in the process, someone else takes over the deed, borrows as much as possible against the value of the house and pockets the cash. And, almost always, the homeowners still end up losing their homes.

There are no nationwide numbers on this common fraud, known as equity stripping, but it has turned up in almost every state. Seven states have passed laws to try to stop it. Still, with foreclosure rates rising rapidly, it will be a growing problem, consumer advocates say.

Those looking to refinance need to get all the facts before making any sort of decisions and always remember that things that sound too good to be true probably are.

The Subprime Troubles Never End…

MSNBC Money is reporting on an SEC investigation into the selling off of subprime debts.

Christopher Cox, chairman of the SEC, told a congressional panel that the regulator was investigating a dozen subprime mortgage issues, including collaterallised debt obligations (CDOs), which are repackaged pools of debt sold to investors.

I foresee more trouble on the horizon…