The second quarter of 2010 proved to be the most brutal time period in home ownership in a decade. Bloomberg News recently reported that 18.9 million homes were vacant in that period. The U.S. Census Bureau reported that the home ownership rate — that is, households that own their own residence — was 66.9 percent, the lowest level since 1999. That is down from the previous quarter of 67.1% and a record-high level of 69.2% in the fourth quarter of 2009.
The Census Bureau further reported that 3.7 million homes were vacant in the second quarter of this year as the result of foreclosures, up from 3.5 million in the first quarter of 2010. Two million empty homes were for sale in the second quarter.
In Q2 2010, a record 269,962 homes were seized as homeowners went into foreclosure, according to a report from RealtyTrac. The California-based data company goes on to say that foreclosures will probably top the 1 million mark before the end of the year.
More bad news: the Mortgage Bankers Association report from May 19 showed a record 4.6% of mortgages in foreclosure and 14% as the result of foreclosures and home loan delinquencies.
The economy and the elimination of the federal tax credit could be attributed to the decline in home ownership. It’s been said that owning a home is the American dream, but that dream has since become more unattainable.
Remember the old commercials urging people to turn their home equity into cash for new cars, vacations and other luxuries? Well, people are still cashing out, but for a different reason: to decrease the size of their home loan.
MarketWatch reported today that “cash-in refinancing” is the new trend in which borrowers tap their home equity …
Continue reading Homeowners Use Cash-in Refinancing to Pay Down Mortgages
The Associated Press recently reported that more people are dropping out of the Obama administration’s loan modification program — a sign, experts say, that foreclosures will rise and cause further damage to an already weakened housing market.
The Treasury Department says that, of the 1.3 million homeowners who enrolled in the program since March 2009, 530,000 …
Continue reading More Homeowners Leaving Government Loan Program
Now that the Wall Street reform bill has been passed by the Senate and President Obama announced his intention to sign it into law next week, these regulations will not only affect the way commodities are traded but who can and cannot obtain a home mortgage.
REALTOR Magazine recently reported that the Dodd-Frank Wall Street Reform …
Continue reading How Will Wall Street Reform Bill Will Affect Mortgage Lending?
The Wall Street Journal is reporting today that the number of mortgage applications to buy a home fell again to its lowest level in 13-1/2 years. The Mortgage Bankers Association released data showing that applications for new homes dropped by 3.1% last week from the week before.
After seeing a 14-month high two weeks ago, the …
Continue reading Mortgage Applications Fall Again
Millions of Americans’ credit scores are sinking to new lows, the Associated Press reported yesterday. Data provided by FICO Inc. shows that 25.5 percent of consumers now have a credit score of 599 or below, marking them as poor risks for lenders. This could lead to those consumers being denied credit cards, loans or mortgages.
It …
Continue reading Credit Scores Dip to New Lows, But There is Hope
This blog has previously reported on those who have strategically defaulted on their mortgages — that is, they have stopped paying their mortgages altogether, knowing they can no longer afford to pay them. Now, it’s not just middle-class and lower-middle-class folks throwing in the towel in their struggle to make payments; it seems the rich …
Continue reading Who’s Defaulting Now? The Rich
The Associated Press reported today that there was an increase in the number of applications for home loans last week as people sought to take advantage of the ever-decreasing interest rates. But the people jumping on the low-interest rate bandwagon aren’t those looking to buy a home; it’s those who already own a home.
Data from …
Continue reading Mortgage Applications Rise, But — Still — No Buyers
On June 30, the U.S. Senate passed a bill that would extend the deadline for people looking to receive the federal homebuyers’ tax credit from June 30 to September 30 to give lenders more time to complete the paperwork. The bill, if it is signed by President Barack Obama, will help 180,000 homebuyers who otherwise …
Continue reading Tax Credit Extensions Helps Homebuyers Seal The Deal
The housing crisis may get more personal for struggling homeowners, even those who have perfect credit. RISMedia reports that homeowners seeking a loan modification or considering foreclosure to help them pay their mortgages might see their credit score fall sharply, thanks to the effects of the housing debacle.
It gets worse. Citing complaints from bankers that …
Continue reading Housing Crisis May Ruin Your Credit Score
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