Of the 2.5 million foreclosures that took place from 2007 to 2009, the Center for Responsible Lending has found a disparity in the proportion of minority borrowers who have lost their homes.
Although most of the estimated 2.5 million foreclosures that took place between 2007 and 2009 resulted in non-Hispanic whites losing their homes, a new study by the Center for Responsible Lending (pdf) has found that blacks and Latinos have been disproportionately affected.
During that time, 4.5% of white borrowers lost their homes to foreclosure, compared with 8% of both blacks and Latinos. However, white borrowers made up 56% of all foreclosures, compared with 12% of blacks and 16% of Latinos.
Now let's go back to the years between 2005 and 2008, when the "vast majority" of these foreclosures originated, the study says. At that time, Latino and black borrowers also were 30% more likely to receive not only subprime loans, but also the more expensive subprime loans that just happen to be associated with a higher risk of default.
Without an $8,000 tax credit from the federal government, sales of new homes in May fall 33%.
And you thought a 2.2% decline in existing-home sales was bad.
But that was yesterday. Today, the Department of Commerce (pdf) reports that new-home sales in May fell 33% to their lowest levels since the agency started tracking new-homes data 47 years ago.
This sharp decline -- which also is the biggest monthly drop on record -- follows two straight months of increases in new-home sales, which likely got their boost from the $8,000 homebuyer tax credit that required participants to be in contract for a home by the end of April.
But the Treasury Department says most of the loans are canceled because the borrowers either become current on their mortgage or enter into an alternative modification program.
As the number of troubled homeowners granted a permanent loan modification through the federal government grows, the number of borrowers booted from the program continues to surpass those getting the long-term aid.
By the end of May, a total of 346,816 permanent modifications were under way through the Home Affordable Modification Program (pdf), while a total of 429,696 trial modifications and 6,357 permanent modifications had been canceled.
Put bluntly, of the 1.24 million loan modifications offered, nearly a third have been canceled.
The homebuyer tax credit proves unable to keep up momentum in its waning days.
After rising for two months straight, existing-home sales in May fell 2.2% from April despite an expected increase from the homebuyer tax credit, which requires buyers to close on a home by June 30 to qualify.
However, home resales also were up 19.2% from May 2009, according to the National Association of Realtors, which is proof that the tax credit still is doing its job.
"We are witnessing the ongoing effects of the homebuyer tax credit, which we'll also see in June real estate closings," said Chief Economist Lawrence Yun.
The nation's first jury trial concerning the corrosive material could set a precedent for lawsuits to come.
A Florida couple forced to flee the effects of the Chinese drywall that was installed in their dream home has been awarded $2.4 million in damages by a jury.
Although a judge in April awarded $2.6 million to homeowners in a similar class-action suit, this newer lawsuit is the first jury trial concerning the defective drywall and could set a precedent for more lawsuits, The Miami Herald says.
The jury found that the defendant, drywall distributor Banner Supply Co., was 55% liable for the drywall problems that forced Armin and Lisa Seifart to move out of their $1.6 million home with their two young boys while having their home gutted to remove the drywall.
Suburban cat owners can create even more elaborate enclosures to keep their feline friends safe while still giving them a bird's eye view of the yard.
More than half of U.S. homeowners plan to make improvements to their patio or deck this summer, but many of them may be hoping to increase their outdoor living space for more than just their family's human counterparts.
As part of their outdoor improvements, countless homeowners probably plan to put up a fence and add a doggie door to give their canine pets a bit more freedom. But The New York Times reports that, in the city, apartment dwellers also are inviting their feline friends to join them on the patio, er, "catio," by fencing in the space with something as simple to attach as chicken wire.
Homeowners with the benefit of a yard and open space can take an even more elaborate approach, giving cats their own space by adding tunnels and cat playgrounds that keep them safe from predators and other dangers of the outdoors.
The leniency is waning for seniors who fail to pay their homeowners insurance or property taxes.
Seniors who think they're free and clear of some of their biggest bills after receiving a reverse mortgage had better read the fine print.
Although the Federal Housing Administration has for years been forgiving of reverse mortgage holders who failed to pay their homeowners insurance or property taxes, that could be changing as early as this summer, Kenneth Harney writes in The Real Deal.
After being hit with a $798 million shortfall in fiscal year 2009, the FHA's reverse mortgage program -- the industry's biggest -- is looking at ways to bridge the gap that may result in grandma and grandpa losing their cherished home to foreclosure, Harney writes.
Operation Stolen Dreams discovers losses of $2.3 billion so far as these crimes continue to rise.
For too many Americans, the offer to refinance was a dream come true that they couldn't refuse. Until it turned to be literally too good to be true.
The FBI said in an annual report that mortgage fraud was up 5% in fiscal year 2009, with loan modification fraud making a big chunk of not only reported crime, but also expected crime because of the high number of homes in the foreclosure process.
So in an effort to help the rising number of mortgage fraud victims, the Justice Department on Thursday announced that its national crackdown on mortgage scams has resulted in charges against 1,215 defendants and 485 arrests.