Signs of new wave of foreclosures
Don't miss these top stories:
Foreclosure starts on the rise
More city bankruptcies on California horizon?
Wells Fargo to pay $175 mln on fair-lending charge
Tool helps underwater homeowners assess options
The number of homeowners who are current on their mortgages, but still calling into the Homeownership Preservation Foundation's hotline for help, is up 70% since last June, the organization reported this week.
And that could signal a new wave of foreclosures.
Of the current borrowers who called for mortgage counseling, 75% had credit scores well above what would be considered subprime when they got their mortgages. But now, reduction in income or increased credit card usage have worsened their financial picture.
Moreover, only 40% of those current callers qualify for the government's expanded Home Affordable Refinance Program.
"We are seriously concerned about the rise in homeowners who were classified as low risk when they took out their mortgages and, as a result of a combination of circumstances--job loss, health-care crises and various recession-related issues--have seen their economic situations severely deteriorate," said Colleen Hernandez, chief executive of the nonprofit foundation, in a news release.
"This could result in the proverbial 'second shoe to drop' for the housing crisis, especially considering the limited options available to homeowners who are struggling but not yet delinquent."
RealtyTrac also reported this week an increasing number of foreclosure starts in the second quarter. Read that and more in this week's Real Estate pages. Plus, read a Realty Q&A about new online calculators that help borrowers determine when their mortgages will no longer be underwater.
"This foreclosure crisis is far from over," Hernandez said. "As lenders are learning to comply with new servicing standards set in place by the National Mortgage Settlement and the Consumer Financial Protection Bureau, make no mistake that notices of default are once again landing in mailboxes across the country at a pretty rapid clip."
--, Real Estate writer
Foreclosure starts on the rise
The number of mortgages entering the foreclosure process in June rose 4% compared with a year ago--the second month in a row foreclosure starts were up over the year--according to a RealtyTrac report on Thursday. Read more: Foreclosure starts on the rise.
In foreclosure data, a sign of more pain to come
The latest foreclosure data from RealtyTrac show year-over-year foreclosure activity continuing to slow in the first half of the year. But in the past two months, RealtyTrac also finds the beginnings of a discouraging trend, as banks take the first step of the foreclosure process more often.Listen: In foreclosure data, a sign of more pain to come.
Tool helps underwater homeowners assess options
A new calculator tells upside-down owners how long it will take to reach a point where what they owe on their loans is once again less than what their homes are worth, Lew Sichelman writes.Read more: Tool helps underwater homeowners assess options.
More city bankruptcies on California horizon?
Is a high foreclosure rate a possible indicator of municipal bankruptcy? And is there an epidemic looming?Read more: More city bankruptcies on California horizon?
U.S. mortgage rates fell again during past week
Average mortgage rates in the U.S. fell again during the past week as fixed-rate mortgages continued to reach new lows amid easing bond yields, according to mortgage-finance company Freddie Mac.Read more: U.S. mortgage rates fell again during past week.
Wells Fargo to pay $175 mln on fair-lending charge
Wells Fargo & Co. on Thursday said it will pay a total of $175 million to settle Justice Department charges that the company violated fair-lending laws for its role in allegedly steering black and Hispanic borrowers into subprime mortgages. Read more: Wells Fargo to pay $175 mln on fair-lending charge.
Race still a problem in lending
A $175 million settlement between Justice Department and Wells Fargo & Co. over discrimination charges ends that particular chapter for the bank, but the industry still has to fight the perception it favors white customers. Read more: Race still a problem in lending.
U.S. weekly mortgage-application volume down 22%
The number of total mortgage applications filed in the U.S. last week fell 22%, the Mortgage Bankers Association said Wednesday. Read more: U.S. weekly mortgage-application volume down 22%.
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