09.08.08

Fannie Mae and Freddie Mac Seized by Government

Posted in Mortgage News at 2:09 pm by Administrator

The Bush Administration has finally seized Fannie Mae and Freddie Mac over the weekend. Many have been expecting this takeover to happen but the fact that the government had to step in and take these companies over shows what a bad position this housing market is truly in. This takeover will calm the financial market now that the government is backing the two major companies and that can be seen in the stock market this morning. The European markets and the Japanese markets were up big today as well as the US stock market this morning. Confidence is key right now in the financial market so the government takeover is proving to be a success with that aspect as of now. How the rest of this will unfold no one knows but this takeover will cost taxpayers a lot of money but was a necessary evil in order to keep the financial market moving and hopefully help to put a bottom in the housing industry. Below is an article touching on the takeover.

US government takes on big role in mortgage market
By MARTIN CRUTSINGER and ALAN ZIBEL, AP Business Writers

WASHINGTON – Uncle Sam has just become the 800 pound gorilla in the U.S. mortgage market. The Bush administration announced Sunday it was seizing troubled mortgage giants Fannie Mae and Freddie Mac in a bid to help reverse a prolonged housing and credit crisis.

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09.05.08

Lenders helping Struggling Homeowners

Posted in Foreclosures, Mortgage News at 1:46 pm by Administrator

Foreclosures may be up from year to year but it looks like more and more homeowners are able to work something out with their current lender to stop foreclosure proceedings. We are seeing a massive shift in lender reaction to borrowers who are behind on their mortgage for a legitimate reason such as a job loss or illness. Not everyone can be helped but at least the conversation is beginning and lenders are finally seeing that it may be best to work something out with the homeowners that can and want to pay their mortgage. Some homeowners fell on hard times and are back on track but find themselves three months behind on their mortgage. It’s difficult to come back from this as most lenders will not take a partial payment. They want all three mortgage payments at once in order to catch up. That is just not doable for many homeowners.

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