Finance

What is a Short Sale? that has been a common question during this foreclosure crisis. Investors make a lot of money buying up foreclosed homes. Recently though, the trend is the “short sale”. A short sale can actually save a homeowner from going through the painful process of foreclosure. A short sale can sometimes even …

How long will the housing/mortgage crisis last? Sheila Bair, chairman of the FDIC (Federal Deposit Insurance Corp.) expects the measures being taken to help the housing and credit industries will not reach their full effect until wellinto 2010. The FDIC recently proposed a comprehensive national program to ease the foreclosure blight. Bair makes no promises …

Contrary to the general conception, Fannie Mae is not a bank. Fannie Mae is a government sponsored enterprise (GSE) that purchases and guarantees (insures) mortgages. These mortgages must meet its funding criteria. This process of purchasing and guaranteeing is called “securing” mortgages. In short, Fannie Mae “secures” mortgages, bundles them together, and sells them as …

Number 4 CNN Top Ten Culprit is named- Texas Senator and Republican Phil Gramm Texas Senator Phil Gramm served as a Democratic congressman from 1978-1983, as a Republican congressman from 1983-1985, and as a Republican senator from 1985-2002. Gramm’s most recent post was serving as economic adviser to John McCain during McCain’s presidential campaign. McCain …

According to this video, Sears Mastercard and other credit card companies are imposing pretty restrictive new credit card rules. They are also cutting credit limits …Even at the expense of offending good customers. In this credit market, the companies are just trying to protect themselves from defaults on credit card debt. This is a problem …

The Negative Amortization Home Loan is the Mortgage industry’s dirty little secret. A “Pick a pay” or “Negative Amortization” mortgage may sound like a cheap way to get into your dream home, but they will actually end up costing you your equity—and that is the good news! These loans not only keep you from building …

Requesting mortgage payment forbearance from 5th 3rd bank, or any lender, involves several steps. Loan forbearance occurs when a distressed borrower pro-actively approaches the lender and asks for reduction or delay of a specific number of payments. Mortgage payment Forbearance is an option only if you are reasonably sure that your hardship is short term. …

President of Mortgage Banking Solutions says the housing market is showing signs of bottoming out and the mortgage industry is climbing out of the instability of days past. Requirements for mortgage approval have become much more stringent. This means the loans being created now have very low chances of going into default. As the housing …

When people are ready to become homeowners, the major question is, “How much can I afford to pay for a home?” The general rule for finding an affordable price range when house shopping is to take your gross annual income (that means before taxes) and multiply that by two and a half. If you make …

Questions about the bailout of Freddie and Fannie How will the bailout of Freddie and Fannie affect first time home buyers and the home market? There will be a big infusion of cash into the banking industry, $200 billion. That means banks will have plenty of money to lend. The bailout is not designed to …