Hidden Mortgage Tax-
Americans had better enjoy the extra $40 they’ll continue to get in their bi-weekly pay checks for the next two months, because most of them will be paying for it many times over in the form of higher mortgage costs. Lost in the contentious debate over the payroll tax cut extension, a 2% cut in U.S. workers’ Social Security tax, was the devious way devised to pay for it. The law that Congress passed and President Obama signed, included a provision that will increase a guarantee fee that finance companies Fannie Mae and Freddie Mac charge to mortgage loan originators, a fee that will get passed onto borrowers as slightly higher interest rate. Continue reading "Hidden Mortgage Tax*"
Government To Sell Foreclosures In Bulk-The Obama administration, in conjunction with federal regulators and led by the overseer of Fannie Mae and Freddie Mac, is very close to announcing a pilot program to sell government-owned foreclosures in bulk to investors as rentals. There currently are about a quarter of a million foreclosed properties on the books of Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA), and millions more are coming. The foreclosure processing delays of last year created a mammoth backlog of properties yet to be processed, which are just now being re-started. One of the initiatives of this program is for the federal government to be in the position to mitigate and mange any new wave of foreclosures. Late-stage delinquencies still in the pipeline number close to two million.
Foreclosure Legislation Signed
Governor Snyder has signed HB 4542-4522, which extends the 90-day workout period, to address Michigan’s foreclosure redemption period. This legislation also eliminates special treatment of property greater than 3 acres by requiring that proof of agricultural activity is provided. Early on in the process, MAR successfully fought attempts to shorten the foreclosure redemption period from six months to three months only for those loans not sold on the secondary market, mainly those loans held by community banks and credit unions. Research has shown that on average a short sale takes 176 days to go through the process. Feedback from NOCBOR members further solidified MAR’s stance as membership has indicated that most often a short sale does not begin until the home owner is already behind on payments. In the end, this legislation was not brought forward. You will continue to see discussion on Michigan’s redemption period over the next year, as the 90 day pre-foreclosure workout period will sunset in January, 2013.
(The Front Page News is provided by the NOCBOR Government Affairs Committee)
I’ve always been interested in property, having completed studies in interior design and have had a few lucky purchases when it comes to houses.
I picked up a bargain with my first house, an ex-local authority end terraced place that I purchased for an absolute snip. After the usual updates eg. new kitchen, bathroom and windows etc, I was able to sell it with a profit margin enough for a decent deposit on a beautiful Victorian property that needed a fair bit more work, albeit cosmetic. Continue reading "Lessons Learned When"
The best rumors have the longest staying power, and the untruths about the connection between Bank of Canada interest rate cuts and mortgage rates is a prime example. Why? Well, though Bank of Canada interest rate cuts do affect the financial industry, they do not affect every segment of the financial sector; some segments are directly affected, others are only indirectly effected, and then there are segments that are directly or indirectly effected depending on the financial product. The mortgage industry falls into that third category. Continue reading "The Truth about Mort"
