• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Source CDPE

First-Time Home Buyer Tax Credit Anticipation Loans Stuck In The Gate

What does this mean for Realtor.com?

Check it out, use this link:

GOOGLE MAPS.

Submitted by Tim Harris

TransUnion LLC, which analyzed about 27 million consumer records in its database, predicted that the proportion of consumers with mortgages that are 60 days or more past-due will hit 7.17% in the fourth quarter of 2009.

That would be the highest level reached since the Chicago credit bureau — which is releasing the data on Tuesday — first started tracking these statistics in 1992. It compares with an expected delinquency rate of 4.67% at the end of 2008.

The big culprit is adjustable-rate mortgages that were underwritten several years ago, when lending standards were loose.

Now, many of the initial teaser rates on these loans are expiring and resetting to higher interest rates and higher loan payments.

“There are a lot more loans that will be resetting throughout 2009 through 2011,” says Ezra Becker, principal consultant in TransUnion’s financial-services group, who notes that rising unemployment and depreciating home values are other contributing factors. “There may be an ongoing flow of consumers who may now be able to pay their mortgage but may not be able to a year from now.”

Mortgage delinquencies are likely to peak in the first quarter of 2010 as today’s new loans, which have tighter underwriting standards, take effect, he says.

TransUnion also predicted that credit-card delinquencies would rise, though not nearly as sharply. By the end of this year, the ratio of credit-card borrowers who are 90 days or more delinquent on one or more of their credit cards is expected to reach 1.09% — roughly the same levels reached at the end of 2007, and flat with third-quarter levels — according to TransUnion.

However, as conditions worsen, the delinquency rate is expected to climb to 1.37% by the end of 2009, or roughly the same levels reached in the fourth quarter of 2007.

Credit-card delinquencies are lower than mortgage delinquencies in part because credit-card lenders have more ways to control the potential losses, such as reducing customers’ credit lines.

And while delinquencies are likely to climb, they aren’t expected to hit historic highs, such as when they hit 1.89% in the fourth quarter of 2002, when consumers were struggling through a recession and the aftermath of Sept. 11.

“We are really going to see issues throughout all of 2009,” Mr. Becker says.

“Even when the economy starts to recover, there’s a delayed effect in how consumers start to respond. If a consumer is unemployed and goes into delinquency, when they get a job they’re not going to start repaying immediately. They have to build up their funds.”

Source Harris Real Estate University

The President and congress says that will be the next “big” initiative.

The bill includes the following provisions:

Homebuyer Tax Credit: The bill provides for an $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
FHA, Fannie Mae and Freddie Mac Loan Limits. The idea in this bill is to reinstates last year’s 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. FHA $417,000 for Fannie and Freddie, maximum cap of $729,750.
Neighborhood Stabilization : The idea is to address the problems that can be created when whole neighborhoods are decimated by foreclosures. I went to a seminar about that in Coral Springs, FL, It wasn’t clear the rules but they are working on that. This bill will help families with incomes at or below 120% of area median income.
Commercial Real Estate provisions of the bill focused on green building and energy efficiency as well as business tax incentives.
And some more.
We hope that these changes will help Realtors and Consumers to bring the economy up.

http://SilviaRuchTeam.com