Tag Archives: Mortgage Debt

The nonprofit counseling agency CredAbility released the results of its first-quarter Consumer Distress Index Thursday. While the average U.S. household is still in financial distress - and has been for 10 consecutive quarters - the agency says the index has hit its highest score in two and a half years. CredAbility attributed the positive movement to the fact that employment levels rose and consumers now have a better handle on managing household budgets. On the flip side, the score dropped in the housing category.

The share of mortgage borrowers in the United States 60 or more days behind on their payments dropped to 6.19 percent at the end of the first quarter of 2011, according to data released Monday by the credit bureau TransUnion. That's down from 6.41 percent at the close of 2010 and marks the fifth consecutive quarter that TransUnion has reported an improvement in the national delinquency rate. The firm says as home prices have declined further, delinquencies were expected to remain flat or at least slow in their decline, but that hasn't been the case.

Nearly twice as many underwater borrowers think it is okay to walk away from their mortgage than harbored this sentiment a year ago, according to the results of a survey conducted by Fannie Mae. A separate academia study, however, found that the number of cases in which the homeowner defaulted even though they cold afford their payments - at least as perceived by their neighbors - appears to be trending down. The researchers also asked about respondents' feelings on robo-signing penalties.

RealtyTrac on Tuesday unveiled new site features of its online foreclosure marketplace that allow users to see the amount of equity - or negative equity - in a property based on its estimated market value and total outstanding loans. The company says this additional information will help buyers and investors quickly determine which distressed properties represent good purchase opportunities for them, and will help real estate agents and brokers pinpoint potential listing opportunities.

According to a new poll from the market research firm Harris Interactive, 22 percent of people with mortgages have difficulty making their monthly payments. The poll also reveals that 21 percent think they are underwater and owe more on the loan than their home is worth. Compared to the results of last year's poll, those struggling to pay their mortgage has declined by 7 percent, but the company says the improvement is deceptive since it likely reflects the fact that borrowers previously experiencing trouble have already lost their homes.

A study by the credit bureau TransUnion shows that when choosing which bills they can afford to pay, consumers are more likely to pay their credit card obligations and fall behind on their mortgage payments. TransUnion says this trend has continued for the past three years, and while the number of consumers current on credit cards but delinquent on their mortgage has declined slightly, it is more than 70 percent higher than it was at the beginning of the ""Great Recession.""

Stewart Lender Services, a nationwide provider of centralized origination, loss mitigation, and REO asset solutions for mortgage lenders and servicers, has announced three key partnerships that will allow the company to expand its service offerings. Stewart is collaborating with Inglet Blair, LLC, Spectrum Field Services, and Field Asset Services.

A rise in stock prices has helped to grow consumers' net worth, but financial duress related to housing and a weak job market are weighing heavy on U.S. households and overshadowing any assurances that an economic recovery is underway. The nonprofit credit counseling agency CredAbility has released its Consumer Distress Index results for the fourth quarter of 2010. The organization found that the health of household budgets has fallen to its lowest level since the first quarter of 2009, causing many homeowners to miss mortgage payments.

The government's key foreclosure prevention program has put 504,648 distressed homeowners into permanently modified loans since its launch in March 2009. Treasury released new numbers for the Home Affordable Modification Program (HAMP) Wednesday, and in addition to crossing the 500K threshold, the data show that servicers stepped up their use of the program. Permanent modifications in November rose 26 percent compared to October, and 20 percent more trial mods were started.

Consumers usually hunt for the best deal -- except when it comes to their mortgages. While 96 percent of American consumers compare prices when shopping, nearly 40 percent obtain just one home loan quote, according to a new survey from LendingTree. The survey also revealed that only 28 percent of borrowers are very confident they received the best possible deal on their current mortgages. Even though 85 percent of consumers use the Web to comparison shop other items, only 21 percent say they shopped online first for mortgage rates.