More on subprime…
NATIONAL (April 5): More borrowers are falling behind on their payments, as an increasing number of mortgages adjust.
At the same time, lenders are clamping down on borrowers with poor credit and low or unpredictable income. Sub-prime lending could decline as much as 50 percent this year from last year’s total of $600 billion, says David Liu, a mortgage analyst at UBS AG.
The net result will be a rising number of foreclosures, warns Mark Zandi, chief economist at Economy.com. Zandi notes that borrowers will face higher monthly payments as rates adjust and because of tighter lending standards, many won’t be able to refinance into loans with easier terms.
READ THE REST
Yahoo redesigns site with eye to foreclosures:
Yahoo! Inc., owner of the most visited U.S. Web site, redesigned its section on real estate foreclosures amid a growing number of defaults by subprime mortgage borrowers.
The Yahoo Real Estate Foreclosure Center lets users search for foreclosures and learn how to purchase the properties, said RealtyTrac Inc., the company that developed the section. The site lists Detroit; Greeley, Colo.; and Atlanta as the three U.S. cities with the most foreclosures.
Palm Bay, in Brevard County, was ranked No. 8.
“We believe the current market presents a unique opportunity for any buyer looking for a bargain,” RealtyTrac Chief Executive Officer James J. Saccacio said. The Irvine, Calif.-based company lists more than 900,000 properties in foreclosure in the U.S.
READ THE REST AT THIS LINK
NEW YORK – Civil rights groups called Wednesday for a six-month moratorium on foreclosures resulting from high-risk loans given to people with shaky credit, arguing that lenders should help borrowers refinance their mortgages – or face lawsuits.
A coalition of advocacy groups said mortgage lenders should immediately halt foreclosures on so-called subprime mortgage loans made at high interest rates to people with weak credit histories.
The groups, at a news conference in Washington, D.C., said a predicted wave of foreclosures stems from “reckless and unaffordable loans” for which investors bear some responsibility.
READ THE REST HERE
