Strategic defaulters opt to continue paying on second liens

High-risk FHA loans push mortgage risk index up in May National Mortgage Risk Index (NMRI): Credit Easing Continued. – The National Mortgage Risk Index (NMRI) continued to show agency purchase loan volume increasing, fueled largely by the easing of lending standards. Agency purchase loan volume by count was up 4%. Reverse mortgages are loans. push the extra costs to $15,000 or more for a $200,000 loan.

Refinancing now is generally a wonderful idea as jumbo loans are back to all time lows in 2016 due to all the volatility in the stock market post Brexit. That said, what happens if you are so underwater on your mortgage that you feel it doesn’t make sense to continue paying anymore because you don.

Abacus Federal Savings Bank found not guilty of defrauding Fannie Mae NEW YORK, June 4 (Reuters) – Abacus Federal Savings Bank , which caters to the Chinese-American community in New York, New Jersey and Pennsylvania, was found not guilty on Thursday of all charges related to the sale of allegedly fraudulent mortgages to Fannie Mae, prosecutors and defense counsel said.

A second option is to open a pledged asset account. borrowing and keeping investments invested can be a superior strategy to paying cash. Currently mortgage interest rates are even lower than.

Monday Morning Cup of Coffee: JPM Chase agrees to massive mortgage settlement Watts’ co-worker Roberts later told the an agent with the Colorado Bureau of Investigation that it was ‘unusual’ that Watts had texted him on a weekend, and stated that he did arrive to the site alone.

But a second mortgage of $80k, $100k, even $250k or more is a totally different story, and such high balances obviously make bankruptcy a compelling option for consumers. The critical factor is that second liens can be stripped in Chapter 13 bankruptcy (i.e., converted to unsecured debts and included in the bankruptcy plan).

The data contradict the hypothesis that consumers would strategically default on a second lien and keep their first lien current to reduce their monthly payment and thus avoid a foreclosure, the.

RealtyTrac reports foreclosure filings rise 3% in January AGs weeks from filing foreclosure settlement documents dual tracking Archives – South Florida Law Blog – AGs Weeks From Filing Foreclosure Settlement Documents Yesterday we expressed concern because we have yet to see the formal documents behind last week’s landmark $25 billion setU.S. foreclosure filings edged up 3% in January as judicial foreclosure states began to see a thaw in delayed foreclosure activity, RealtyTrac said. The Irvine,Calif.-based firm said foreclosure.

So one option is to take the loans off balance sheet and. mainly because little trickles down to this type of second lien if a borrower defaults on its first mortgage. “If nothing is left over at.

Wells Fargo will not join BofA in foreclosure suspension Wells Fargo By Philip Mattera Wells Fargo is the smallest of the four. Norwest had its origin in 1929, when several struggling Midwest banks joined forces in a. by securities regulators in nine states that it failed to prevent conflicts of. in December 2010 of charges relating to foreclosure abuses; an $11.

Yet, that personal assessment obligation of the owner is no longer secured by the association’s lien. Second Lien and Other Junior Lender Foreclosures. When a second lien lender forecloses, they are subject to the super lien (when they take title on completion of their foreclosure).

A default, therefore, could allow a HELOC lender to foreclose on its lien to recover what it’s owed. Foreclosure Likelihood Though a HELOC lender could foreclose its lien on a defaulting borrower.

Strategic defaulters opt to continue paying on second liens. By Angel In home loans. contents Debtors anticipate m homeowners manhattan real estate Technical extends national flood national flood insurance exclusive 2018 economic outlook A response to Luigi Zingales’s.

The company had another coupon to pay on April 1, so there was the potential of a financial default, but Energy Future had dodged. coupon payments with respect to certain of its first-lien notes,