In preparation for the deluge of foreclosures expected to wash over California and the country by the end of 2010, Bank of America (B of A) has announced a new program: a $3 billion principal reduction program for homeowner’s with loan-to-value (LTV) ratios exceeding 120% of the home’s current market value. B of A will reduce a homeowner’s LTV ratio to as low as 100%.
This program is limited to homeowners who have either an option-ARM or a two-year rollover ARM.
Participants of this program will have their loan balance bifurcated. The amount available for possible write-off w...
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Foreclosure Prevention Warning
As mortgage delinquencies remain somewhat out of control, those looking to capitalize on California’s 2,500,000 struggling underwater homeowners are emerging from the woodworks. They hold in their hands a promise many have been waiting for: to prevent home foreclosure. However, behind their sweet-tasting words is a serpent’s tongue casting about for financially wounded homeowners’ money.
Be wary of anybody who promises to be an “expert” in foreclosure prevention – or short sales for that matter. This is not to say in any way that all claiming to be experts have ill intentions, but ra...
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Paying Down Your Mortgage Is Good?
Have a low interest rate on your mortgage? Make sure you crunch the numbers before you pay down the principal.
Would the money used to pay down the mortgage make more than 3.25% (the effective rate of interest on a 5% mortgage after tax savings on interest and deductions) elsewhere? With interest rates going up as the Fed stops buying mortgage-backed bonds and we turn from the financial crisis to fighting a recession-based recovery, it stands to reason that money would be better invested in higher-yield investments than paying down a 5% mortgage to buildup wealth in home equity. This ...
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