A study has found that black debtors are twice as likely as white debtors to wind up in Chapter 13 Bankruptcy. This disparity persisted even when adjusted for income, home ownership, assets, and education. Chapter 7 typically allows debtors to erase most debts in a matter of months. Chapter 13 has a lower success rate, is more expensive than Chapter 7, and requires debtors to dedicate their disposable income to paying back their debts.
A Florida state appeals court has asked the Florida Supreme Court to clarify what is required to void a foreclosure sale. The 4th District Court of Appeal said the state Supreme Court needs to decide if a foreclosure sale can be set aside if the adequacy of the bid price is not at issue.
Reducing mortgage balances is an idea that could be helpful to or cause more default among borrowers. Some experts feel that widespread principal reductions may drive defaults much higher. Also, taking this step may tighten lending by forcing banks to offer “price protection” to borrowers. The data shows there is essentially no difference in re-default rates among delinquent borrowers given only payment reductions and those also offered smaller mortgages.
A draft settlement between the nation’s major banks and U.S. states over deceptive foreclosure practices has been sent to state officials for review. Those who lost their home to foreclosure are unlikely to get their homes back or benefit much financially from the settlement. About 750,000 Americans could receive checks for about $1,800 under the deal. However, the agreement could reshape mortgage lending guidelines and make it easier for those at risk of foreclosure to restructure their loans.
Washington Redskins and former Miami Hurricane wide receiver, Santana Moss, is in foreclosure for not paying the mortgage on his Lighthouse Point home according to Duetsche Bank. He was signed to a three-year $15 million contract with the Redskins in July that also included a $5 million signing bonus. So it is surprising the Deutsche Bank would allege that Moss has gone into default on a mortgage issued for $3.64 million in 2006.
The good news about the current housing market is that there is an abundance of inventory and affordability. However, the most recent numbers show prices steadily declined from October 2010 to October 2011. Overall, prices are lower than they were in October 2001 and in some cities, prices are at their lowest level in 20 years.
Hundreds of firms responded to a U.S. government request for proposals to rent out foreclosed homes. Fannie Mae and Freddie Mac seek to reduce losses, stabilize neighborhoods and support housing values by turning into rentals a portion of the more than 180,000 repossessed homes in their inventory. Plans for a foreclosure-to-rental program are significant because Fannie Mae and Freddie Mac service more than half of U.S.
CoreScore is a new type of credit report developed by a data company called CoreLogic. CoreScore looks at financial records such as credit card borrowing, bank transactions, and mortgage information, much like a traditional credit score. The new rating also examines the kinds of transactions likely to occur at the lower end of the income scale. These include car payments, rental payments, and payday loans.