Record Number of Homes in Foreclosure

The current number of homes in foreclosure has now topped 1 Million, according to a Thursday report by CNN. This number is expected to continue to climb. At the root of the problem are subprime loans that were granted to borrowers with weak credit records, especially those loans that had adjustable rates. At this time, four out of every ten subprime loans of this nature are either late in payment, or already in foreclosure. The results are that home prices continue to decline, while losses climb for banks and other financial firms involved in the housing market.

To read the complete story, please visit:
http://money.cnn.com/2008/06/05/news/economy/foreclosure/index.htm?section=money_realestate

HUD Proposes Improvements to Help Mortgage Consumers Avoid Confusion

According to a new nationwide report by the Urban Institute, many Americans are overpaying by thousands of dollars in total closing costs when they purchase a home. This study revealed that overpayment is due to the large number of varying loan charges, title fees, and other costs of closing that are charged in the process, and the study also specified that minority borrowers overpay to an even larger extent than non-minority homebuyers. To remedy this disturbing issue, HUD is currently proposing that loan terms and closing costs are more clearly disclosed to consumers when they buy or refinance a home.

For the complete story, please visit:
http://www.hud.gov/news/release.cfm?content=pr08-077.cfm

FHA Helps Families Keep Homes during National Homeownership Month

According to HUD, a month long campaign has been launched this week in order to continue the efforts to help families keep their homes. The campaign focuses on American’s use of the FHA as a resource to avoid foreclosure, since the FHA is at the heart of the Bush Administration’s deliberate, financially secure efforts to help qualified homeowners refinance into safe and affordable mortgages. Since September 2007, over 220,000 families have refinanced with FHA.

To read the complete outline of the plan, please visit:
http://www.hud.gov/news/release.cfm?content=pr08-079.cfm