FHA Moves to Stop “Buy and Bail”

As the nation’s housing mess has rolled out, more than a few media reports have provided anecdotal evidence to support the idea that some borrowers are buying new homes for less money and then immediately defaulting on their current principal residence — called a “buy and bail,” most of the borrowers doing this are hopelessly underwater on their current mortgage. And they’re having to lie about receiving rental income on their current home in order to do it, in many cases, too.

To read the complete story, please visit: http://www.housingwire.com/2008/09/24/fha-moves-to-stop-buy-and-bail/

Preston allocates nearly $4 Billion to stablize neighborhoods in states and local communities hard-hit by foreclosure

U.S. Housing and Urban Development Secretary Steve Preston today allocated a total of $3.92 billion to all states and particularly hard-hit areas trying to respond to the effects of high foreclosures. HUD's new Neighborhood Stabilization Program (NSP) will provide targeted emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.

To read the entire release, please visit: http://www.hud.gov/news/release.cfm?content=pr08-148.cfm

Wachovia Offers Loan Modifications

Some homeowners who obtained adjustable-rate mortgages from World Savings Bank may be able to restructure their home loans and avert foreclosure through a new program launched by Wachovia Corp., officials said Thursday. Wachovia has commissioned about 10 mortgage companies, including BWC Mortgage Services, to find residential borrowers who have a "Pick A Pay" adjustable rate mortgage.

To read the entire article, please visit: http://www.hispanicbusiness.com/news/2008/9/26/wachovia_offers_loan_modifications.htm