Facing foreclosure can be and often times IS a frightening experience. The possibility of losing your home often drives homeowners into seclusion from the rest of the world. They are afraid to answer the phone, check the mail, or even answer a knock at the door! Where do you turn, what do you do? Who can you talk to?
Prestige Properties LLC has been working with homeowners who are facing foreclosure for over 30 years, and the main enemy is TIME. There is a timeline that starts with your lender the minute you are late on your mortgage. The timeline does not stop for anything other than full repayment. THAT is why it is crucial for you to take action immediately. You do have options, but they diminish quickly as time progresses. Some of your options include, loan modification, refinancing, straight sale, short sale, etc...
Let us sit down with you and go over your options with you. There is NEVER any charge to you for this service and we deal direct with your lender for you. RELAX! There is a better way and there is a light at the end of the tunnel. call us at 410-643-3332 and ask for Kevin.
Friday, September 21, 2007
Foreclosures Not Likely To Stop Soon
The Bush administration, bracing for a tidal wave of home foreclosures by people with subprime mortgages, is softening its opposition to Democratic proposals to expand the giant government-sponsored mortgage finance companies.
In a chilling assessment Thursday, Alphonso Jackson, the secretary of housing and urban development, told the House Financial Services Committee that about 500,000 homeowners - one-quarter of the 2 million who have subprime mortgages scheduled to reset to higher interest rates over the next 18 months - were likely to lose their houses.
One central proposal by House and Senate Democrats would allow Fannie Mae and Freddie Mac, which guarantee conventional mortgages of up to $417,000, to buy and hold many billions of dollars' worth of additional mortgages in their own portfolios. Supporters say the move could help many people replace their expensive subprime loans with cheaper fixed-rate loans that are guaranteed by Fannie or Freddie.
The Bush administration and the Federal Reserve have both staunchly opposed that idea, arguing that the companies enjoy implied backing from the federal government, and if their investments soured taxpayers would face a major risk.
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said Thursday that the differences had narrowed.
"I believe there's a good deal of agreement between us and the administration on much of this,"
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Frank said at a hearing with Jackson, Treasury Secretary Henry Paulson and Ben Bernanke, chairman of the Federal Reserve.
Paulson insisted that it would be irresponsible to expand the role of Freddie Mac and Fannie Mae without putting them under a strong independent regulator. But he quickly praised the House for passing a bill that "goes a long way" toward that goal.
At the moment, the companies each hold about $700 billion in home mortgages in their own investment portfolios. They also resell billions of dollars in additional mortgages by bundling them into securities that are traded by investors around the world.
Paulson suggested that he might support a temporary increase in the size of mortgages that the two companies can buy and resell. They are barred by law from buying mortgages bigger than $417,000, which is smaller than the median price of homes in some urban markets.
The biggest obstacle to a deal is the Senate, where Democratic leaders are eager to pass a housing rescue bill but say it will be difficult to muster the 60-vote majority needed for a bill to tighten the regulation of Fannie Mae and Freddie Mac.
Frank, in a nod to the administration, declared that he would not accept a Senate bill that did not provide for a new regulator.
Bernanke said he remained skeptical about letting the government-sponsored companies expand their investment portfolios.
But he said the turmoil in subprime lending had demonstrated a need for tougher restrictions on borrowers as well as lenders. In the past, the Fed and other federal regulatory agencies have been timid about restricting practices, saying they did not want to block loans that might be useful to certain low-income borrowers.
"The recent problems in subprime lending have underscored the need not only for better disclosure and new rules but also for more uniform enforcement in the fragmented market structure of brokers and lenders," he said.
Bernanke said 15 percent of subprime loans were seriously delinquent in July - that is, 90 days or more in arrears. That is triple the level of two years ago. Most experts expect both delinquency and foreclosure rates to continue climbing sharply, especially if resale prices continue to decline.
The Fed chairman singled out several lending practices under close scrutiny: pre-payment penalties, which make it difficult for borrowers to replace a subprime loan with a more traditional mortgage; no-documentation loans that do not require borrowers to supply proof of their incomes; and loans with payments that seem low because they do not include escrow accounts for property taxes and insurance.
In a chilling assessment Thursday, Alphonso Jackson, the secretary of housing and urban development, told the House Financial Services Committee that about 500,000 homeowners - one-quarter of the 2 million who have subprime mortgages scheduled to reset to higher interest rates over the next 18 months - were likely to lose their houses.
One central proposal by House and Senate Democrats would allow Fannie Mae and Freddie Mac, which guarantee conventional mortgages of up to $417,000, to buy and hold many billions of dollars' worth of additional mortgages in their own portfolios. Supporters say the move could help many people replace their expensive subprime loans with cheaper fixed-rate loans that are guaranteed by Fannie or Freddie.
The Bush administration and the Federal Reserve have both staunchly opposed that idea, arguing that the companies enjoy implied backing from the federal government, and if their investments soured taxpayers would face a major risk.
Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said Thursday that the differences had narrowed.
"I believe there's a good deal of agreement between us and the administration on much of this,"
Advertisement
GetAd('tile','box','/home_article','','www.mercurynews.com','','null','null');
Frank said at a hearing with Jackson, Treasury Secretary Henry Paulson and Ben Bernanke, chairman of the Federal Reserve.
Paulson insisted that it would be irresponsible to expand the role of Freddie Mac and Fannie Mae without putting them under a strong independent regulator. But he quickly praised the House for passing a bill that "goes a long way" toward that goal.
At the moment, the companies each hold about $700 billion in home mortgages in their own investment portfolios. They also resell billions of dollars in additional mortgages by bundling them into securities that are traded by investors around the world.
Paulson suggested that he might support a temporary increase in the size of mortgages that the two companies can buy and resell. They are barred by law from buying mortgages bigger than $417,000, which is smaller than the median price of homes in some urban markets.
The biggest obstacle to a deal is the Senate, where Democratic leaders are eager to pass a housing rescue bill but say it will be difficult to muster the 60-vote majority needed for a bill to tighten the regulation of Fannie Mae and Freddie Mac.
Frank, in a nod to the administration, declared that he would not accept a Senate bill that did not provide for a new regulator.
Bernanke said he remained skeptical about letting the government-sponsored companies expand their investment portfolios.
But he said the turmoil in subprime lending had demonstrated a need for tougher restrictions on borrowers as well as lenders. In the past, the Fed and other federal regulatory agencies have been timid about restricting practices, saying they did not want to block loans that might be useful to certain low-income borrowers.
"The recent problems in subprime lending have underscored the need not only for better disclosure and new rules but also for more uniform enforcement in the fragmented market structure of brokers and lenders," he said.
Bernanke said 15 percent of subprime loans were seriously delinquent in July - that is, 90 days or more in arrears. That is triple the level of two years ago. Most experts expect both delinquency and foreclosure rates to continue climbing sharply, especially if resale prices continue to decline.
The Fed chairman singled out several lending practices under close scrutiny: pre-payment penalties, which make it difficult for borrowers to replace a subprime loan with a more traditional mortgage; no-documentation loans that do not require borrowers to supply proof of their incomes; and loans with payments that seem low because they do not include escrow accounts for property taxes and insurance.
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