| Austin's Foreclosures Down By 15 Percent
Attorney General Greg Abbott said the rate of foreclosures in Texas is a crisis. He also warned that some lenders are contributing to the problem. "In part, because a lot of these homeowners were misled into entering into these loans to begin with, that we've been involved in bringing legal actions against some of these sub prime mortgage lenders, such as Ameriquest," Abbott said. Abbott encouraged those homeowners to contact their lenders directly or to talk with a Housing and Urban Development-approved agency. While cities like Fort Worth, Dallas and San Antonio suffer with increasing foreclosure rates, Austin is actually fairing pretty well.
KXAN Austin News spoke with two realtors Monday, who said that the foreclosure rate in Travis County is actually down 15 percent, compared to this time last year.
How the failure of subprime mortgages hurts the overall economy
Given the huge piles of consumer and business debt out there, many U.S. residents seem to think easy credit is their birthright. That cozy feeling that a loan is always within reach is getting rudely shaken. An international credit crunch is upon us. The subprime mortgage crisis spawned it, but everything from home-equity loans to business lines of credit may be touched before it's over. Sectors as disparate as auto-parts suppliers and developers of riverfront condos in Detroit are feeling the pinch of tighter credit, battering an already weak Michigan economy. "The unwinding of debt is all encompassing. It's from the little homeowner out there to the big corporation," said Larry Moss, senior vice president for the Raymond James investment firm in Birmingham. .
A new leniency in mortgage rescues
The mortgage industry gladly helps people buy homes when the market is up. How much will it help borrowers keep their homes in down times? Last week, the Bush administration got an answer: When all parties win in loan readjustments. Since August, the Treasury Department has corralled top players in the business to set a new industry standard for rescuing homeowners who will face higher interest rates in the next couple years under what are called subprime loans, or 6.5 percent of all mortgages. A collective response by lenders will be one small step for easing a housing depression and a giant leap for many borrowers. By winning such a pact to aid troubled homeowners who meet certain credit thresholds, the government must now watch closely to see how this finely threaded deal plays out – and how fast.
Schwarzenegger Visits Oakland, Brings Foreclosure Help
OAKLAND, Calif. -- California Gov. Arnold Schwarzenegger Friday came to Oakland, which has the 10th-highest foreclosure rate in the nation, to announce a new fund aimed at helping local homeowners who are facing foreclosure to keep their homes. OneCalifornia Foundation founders Kat Taylor and Tom Steyer contributed the initial donation of $1 million to a bridge loan fund that will be administered by the foundation in Oakland. The bridge loan will assist homeowners who don't qualify for other assistance, such as Schwarzenegger's agreement with loan servicers announced last month, or President George W. Bush's nationwide agreement with subprime lenders announced Thursday. .
Activists protest at subprime loan servicer's offices
Community activists with the ACORN group took another swing at subprime loan servicer Ocwen Financial Corp. on Thursday, holding protests in Orlando and elsewhere, accusing the company of shutting out distressed homeowners.
ACORN alleged that West Palm Beach-based Ocwen has forced many financially strapped people into foreclosure by ignoring or refusing their requests for home loan modifications that would save their homes.
More than two dozen people joined the ACORN rally on Thursday at Ocwen's customer service operation at the Central Florida Research Park. Protests also were planned in West Palm Beach, Dallas, Atlanta and Meridian, Idaho.
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Low Interest Rates Spur Mortgage Refinancing
Homes sales may get a boost when the fed's recent interest rate drop translates into mortgage rates. The cut will make it easier for many people to get into a new home and will also enable people to refinance to avoid future hardship. Several loan officers and mortgage lenders all say the same thing -- now is the time to refinance your home. But before you do, consumers need to understand the process is not cut and dry. Loan officers around the valley say more and more homeowners need to look into refinancing to take advantage of the low interest rate. Different loans can either lower your monthly payment or even shorter your term But it's not that simple. In order to refinance, you have to have decent credit and have some equity built up in your home.
It takes more green to fill grocery bags
They'll get some tax breaks, too. Businesses will be able to immediately write off 50 percent of purchases of plants and other capital equipment. Small businesses currently are able to take tax deductions on the first $125,000 they spend on new equipment, Marita said. That will be raised to $250,000. In both cases, the deduction eligibility likely will apply to this calendar year and not be retroactive, Marita said, because the government wants to encourage spending. Q: Since mortgages and foreclosures are a big part of the problem with the economy, how will homeowners be helped? A: The stimulus package includes changes in mortgage lending, including a one-year increase in Freddie Mac's and Fannie Mae's conforming loan limits (from $417,000 to a maximum of $729,750), and a permanent increase in the FHA loan limit from $367,000 now up to a maximum of $729,750.
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