Your Questions About Mortgage Rates Trends

Carol asks…

serious business if you think you are going to be a smart axx don’t message me only those who want to help me.

Then, read it through carefully and correct the errors by inserting the proper punctuation marks or deleting those that are incorrect.

Post the revised copy in the provided text box.

Foreclosure Filings Hit Record High
By Kenneth Musante,
CNNMoney
Posted: 2008-05-14 13:00:31

NEW YORK (May 14) — US foreclosure filings reached a record high in April rising almost 65% over the previous year and putting municipalities at risk by cutting into the value of taxed property according to a study released Wednesday.

Some 243,353 households nearly one in 519 received a foreclosure filing during April according to the US Foreclosure Market Report from RealtyTrac an online marketplace that tracks foreclosed properties That was up 4% from March, and surpassed the record of 239,851 set in August 2007.

It’s “the highest monthly total we’ve seen since we began issuing the report in January 2005 said chief executive James J. Saccacio in a statement.

RealtyTracs measure of foreclosure filings includes notices of default auction sales and bank repossessions According to the report, 54,574 were fully repossessed by banks in April.

Property tax plunge: The record number of foreclosures added their weight to an already saturated real estate market pulling down home prices Plunging home values reduce the money that cities villages and towns collect in property taxes.
In particular jeopardy are parts of Nevada California Arizona and Florida whose states maintained the highest foreclosure rates, according to RealtyTrac.

“For example the city council in Vallejo Calif. – part of a metropolitan area with a foreclosure rate that ranked sixth highest in the nation in April – last week voted to have the city file for bankruptcy said Saccacio.

The state of California had the second-highest foreclosure rate in the nation up 112% over the previous year and affecting about one in 204 households The top spot among states was held by Nevada which maintained a foreclosure rate 3.6 times the national average affecting about one in 146 homes.
Nationwide single-family home prices have fallen 7.7% since the beginning of the year to the lowest level since at least 1982 according to the National Association of Realtors and data from real-estate broker Zip Realty showed that the number of houses on the market grew by 3.5% in April.

With more homes being seized by banks, local governments also lose out on tax revenue from sale transactions. “It’s really hitting the municipalities from multiple fronts said RealtyTrac marketing vice president Rick Sharga in an interview.

Ten hardest hit metro areas: Cities in California and Florida have been particularly hard-hit. Areas in those states accounted for 9 of the top 10 metropolitan foreclosure rates.

The California metro areas of Merced Stockton Modesto and Riverside-San Bernardino took the top four spots. In Merced one out of 66 households was hit by foreclosure in April.

In Florida Cape Coral-Fort Myers came in at number 5 Port St. Lucie-Fort Pierce and Fort Lauderdale came in at numbers 9 and 10.

Also making an appearance was Las Vegas a city that had seen heavy real estate speculation at number 7 with one in 116 households receiving foreclosure notices.

As Congress debates plans to prop up troubled homeowners the foreclosure rate shows little signs of slowing. Delinquent mortgage payments which lead to foreclosure will likely rise over the next six to 12 months according to a key mortgage trend statistic from First American CoreLogic.

Copyright 2008 CNNMoney
2008-05-14 06:06:18

admin answers:

Yeah, what they said.

Nancy asks…

Libor – Any Mortgage Experts Out There?

My rate adjusts once a year based on the one year Libor. I believe it’s around 3%, so it adjusts to Libor + 2.25%. I was going to refinance until I looked into this, and realized at today’s Libor my rate would actually go down to 5.25% for the next 12 months. The only thing is, I don’t know too much about the Libor. Based on my limited knowledge and trends, I am guessing in the next 30 days the Libor is not really going to fluculate too much and I should hold steady. True? Any way I can get a better handle on what to expect in the next 30 days?

admin answers:

You are one of the few people benefiting from the continued Fed rate cuts. Libor tracks very closely with the federal funds rate, so as long as the fed keeps cutting, your mortage will drop. Over the next 30 days, you will probably see another drop in LIBOR. The market is assuming the fed will cut anohter half to .75 from the fed rate, so your mortgage will likely go down even more if it is set to adjust soon.

If it were me, I’d probably sit tight in that mortgage right now. The fed rates are going to go lower, and won’t be heading up for a good long while, at least until after the elections in November, and probably a lot longer.

The risk is that when they do decide to increase rates (no time soon) then you may not be able to get a fixed rate at the prices you can today.

What i’d do is stay in that mortgage for now, enjoy the lower rate you are about to get, and pay as much extra as you can each month to reduce your mortgage balance. A lower balance will give you a lot more flexibility when the time comes that you have to make a change.

Lizzie asks…

the fed reserve bank lowered interest rate by half a percent?

and houses are becoming cheaper by the day.
If this trend continues, would it be smart to wait a few more years and buy a new house for $50.000, with a zero percent mortgage loan?

admin answers:

If you wait a while longer yet, the banks pay you to take them of their hands, you’d also might want to shop around for a house in Detroit, I hear you can pick up houses there for around $5000, right now.

Mark asks…

Are Americans in danger of losing homes?

From the information I have- sub-prime market is around 1/3 of US mortgage market (FT).
Fed recently cut rates– which is rather unusual as Central Bank rates tend to follow a movement trend- eg steadily down, or up not rise then fall within 6 months.

If America faces furtehr economic problems- and foreign lendors demand more rapid repayment of sub-prime guarantees:

Is there a real danger of Americans being left bankrupt and or homeless?
How real or unlikely is this situation (what we see/read is often very diferent from real life)?

admin answers:

Some are, some aren’t. Look at the foreclosure section of your local newspaper and see how many people really are losing their homes.

Sandra asks…

mortgage lender problem?

I guess I was one of the ones that rode the bubble ,Heres a brief story ,Im 36 whoohoo ,but in my twenties i got married ,worked two jobs had a perfect score ,duh duh enter the ex wife ,got stupid ,needless to say shes got the house ,filed bankruptcy,blah ,blah same ol american dream story gone awry,fast forward like 6 yrs was getting use dto not havin anything toshow for i guess ,get a lucky break ,a blood sweat and tears job that pays ,buy a house ,but i cant qualify for a regular loan because they cant count my per diem as income ,any ways they set me up on a construction loan ,interest only,until i can get my time in so they can count it ,any ways now it seems like theyre putting it to me ,they sent me a state ment for 48 cents ,for the month of march ,i should have have known better but i paid it .the following month they hit me up with a statement saying i owed for two months of full payments ,which i paid it hurt but i figured i had it coming ,then i get the following months statements now i owe three months ,plus late payments interest if thats what you want to call it. its all on paper they applied a payment to principle .at which this point im still on on a interest only loan,tried calling them,but no suprise no answer,even sent copies of statements with payments but suprise still no answers ,i figure im going to follow the american trend and end up screwed,just wanted to know if theres anything i can do ,or am i just another statistic ,should i pack my shit up and move to another country to pursue the american dream,you know go to work ,come home ,raise your kid and not worry,at this rate i feel like either going to wisconsin and kicking the !@#$%^ out fo some one ,or just like burning the place down ,letting my kid live on welfare and her mom keep milking her cash cow ,and taking my chances in the pen ,i can truly understand the movie falling down now ,sorry to be so melodramatic ,but im at my end

admin answers:

Man, I’m sorry to hear about all of that! I just can’t believe it! I am going through some trouble right now; I was trying to buy my first home & got screwed & pulled along for 3 months; paid out over $4000 for nothing! Anyway; I think you should do what I am about to do! REPORT them to the Attorney General’s office Asap!! Then maybe they will consider answering your calls! Lol If I could afford it, I would pack up & move to another country to pursue the American Dream also! Lol

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