FHA Book

7% Good News.

Bloomberg is reporting on figures from RealtyTrac that foreclosures in July are up 93% from last year! Although this sounds devestating, it turns out over half of these are from 5 states. So, it is pretty devestating for California, Florida, Michigan, Ohio, and Georgia and only moderately crappy for the rest of us.

Quick Hits

These are both kind of “Tell-Me-Something-I-Don’t-Know” stories for those of us who keep up on lending/FHA news. But, just so you can see who is reporting what:

CNN Money has a piece on lenders working with borrowers to avoid foreclosure

Homes101 has a story on the effect of FHA legislation - if it passes.

More Bad News for the Housing Market

According to the New York Times, mortgage giant Countrywide Financial is predicting that the housing slump may continue until 2009.

The news from Countrywide, widely seen as a bellwether for the mortgage market, initiated a sell-off in the stock market, which is at its most volatile in more than a year. The Standard & Poor’s 500-stock index fell 30.53 points, or 2 percent, to 1,511.04, its biggest one-day drop in nearly five months. The dollar dropped to a new low against the euro, edging closer to $1.40 to 1 euro. Stocks opened sharply lower in Japan this morning.

Not good. Not good at all.

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.

“If you put your mind to it, you can accomplish anything.”

An article in the Baltimore Sun looks at the problems of today and sees many similarities with the problems of years past.

“It’s really back to the future,” said Paul E. Skeens, owner of Carteret Mortgage Corp.’s branch in Waldorf. “We’re headed back to a more normal cycle [after the feeding frenzies of the boom years]. The crazy stuff may be gone, but the old solutions still work great.”

The article highlights tried and true solutions for borrowers in a post-boom market, including Freddie Mac and FHA loans, reassuring weary souls that all is not lost. All that’s missing is the Flux Capacitor…