Contrary to popular belief, mortgage lenders are totally opposed to foreclosing. If they have to do it, it'll usually cost them money. And who wants to lose money? Nobody. EMC Mortgage reports that on average it loses 40% of the value of a home loan gone into foreclosure, plus typically has to pay property taxes and other expenses related to the house. That's bad business.
The question is, how are lenders dealing today with the alarmingly climbing foreclosure numbers? EMC and some others have come up with feasible solutions. Read more by clicking here.
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Provided by:
Esko Kiuru
Mortgage and real estate market commentator
www.BluefoxToday.com - syndicated mortgage and real estate blog
eskokiuru@gmail.com
My cell: 702-499-1006
Well...the guidelines for most of our lenders are getting so tight that people that don't deserve great programs...because not everyone deserves a great mortgage...are getting what they can handle as apposed to bitting off more than they can chew.
From what my lenders are telling me is that there will be an increase in FHA loans due to the regulations on the sub prime market. It will take buyers longer to get into a house because of FHA guidelines. The new sub prime guidelines should curtail some of the foreclosures.
Brad,
Let's see how the market rights itself in the coming months.
Dan,
FHA almost disappeared from the radar with all these subprime players around, but is seemingly making a bit of a comeback now. Let's see how much market share they can reclaim.