“New Jersey has largely been in the middle of the pack of states when it comes to foreclosure rate since the recession sent the housing market spiraling downward in late 2008. One key reason for New Jersey shooting up the foreclosure charts is the troubles in Atlantic City, where three of its 12 casinos recently closed their doors, with another set to shutter November 13. That has left 6,200 casino employees out of work with another 2,800 set to hit unemployment later this year.” http://egclawfirm.com/breaking-foreclosures-new-jersey-skyrocket-august-now-4th-highest-country/
In his interview with HousingWire, Mel Watt, the director of Federal Housing Finance Agency urges the opening of the mortgage credit box to less-than-optimal borrowers.
“We are getting lenders to reduce some of the credit overlays,” he said inthe exclusive interview.
Furthermore, FICO scores will ignore debts that have been paid off or settled, and a lesser weight will be assigned to medical bill collections, which account for about half of all unpaid collections on consumers’ credit reports.
Nonetheless, the average FICOs have been going down steadily since 2006 and it’s not hard to see why, what with the housing crisis, the financial meltdown and the general recession and record unemployment and underemployment.
So what can those with a FICO that is under 620 do to get a mortgage?
The sale of $15.8 billion in nonperforming loans by the U.S. Housing and Urban Development Department cut losses to its troubled insurance fund and helped stop foreclosure for about 6,400 homeowners, the agency said.
HUD has sold more than 91,000 loans, including almost 53,000 this year. Half of the about 38,000 loans sold through last year were resolved as of May — meaning they went through foreclosure or another outcome and are no longer considered nonperforming — and 34 percent of those resolutions resulted in property seizures being averted, the department said in a report released today.
” Perhaps the most controversial development in America’s housing “recovery” is the role played by large private equity firms. In recent years, they have bought up more than 200,000 mostly foreclosed houses nationwide and turned them into rental empires. In the finance and real estate worlds, this development has won praise for helping to raise home values and creating a new financial product known as a “rental-backed security.” Many economists and housing advocates, however, have blasted this new model as a way for Wall Street to capitalize on an economic crisis by essentially pushing families out of their homes, then turning around and renting those houses back to them.
The principal disadvantage of a full credit bid by lender at its foreclosure sale is that it may have a eliminated its right to recover from guarantors, foreclosure on additional security, retain rents collected by a receiver, collect insurance proceeds, collect damages claims, etc. There is a substantial body of case law dealing with these issues, and the outcomes are not always what might be expected and many of the decisions have some conflicts between them. However, the problems created by a full credit bid can be avoided if the foreclosing lender, as its initial bid, only credit bids 20/30% of the apparent equity in the property (assuming that it has a valid and enforceable first priority lien on the property).