Billings, MT

High Mortgage Interest Payments May Be Useful to Pursue Potential Nonfilers and Underreporters

The IRS may be able to enhance its efforts to address taxpayers who are making high mortgage interest payments, but are not filing tax returns

Is it just me or has our town just decided to clean out their junk?

There was actually competing signs on every street corner on parts of Main Street in Billings Montana this weekend, with colorful directions to a yard or garage sale. As I look around my garage, and my office, I have to wonder who else would want any of this shit stuff? And for all of the garage sale mania going on, why do people even want more stuff?

My husband even brought home a double sink we stripped out of a condo this weekend for "cleaning my vegetables outside". This means we'll have another big metal thing in the shop that he already has a hard time walking around in. Heck, there might even be another kitchen sink in there from the last time he thought this idea up.

Why are we so attached to this stuff? Well, sometimes we spent hard cold cash for a really great thing we might need some day. Or, maybe we inherited some really good memorabilia from some of our older family members (I think they were just trying to clean out their crap so they could buy new stuff).

About 20 years ago I left my husband in charge of the movers and headed to our new home and work in another town. When the movers arrived I had 5 couches instead of the 2 I had when I left. His thought was that we had a bigger house and we could handle a few more couches that some other people in the family didn't want anymore. I do love this man, so what have I done to handle this situation? Built a 30 x 50 foot shop. This way we can at least close the doors and no one is the wiser!

I wish I could have a garage sale, but what would I put in the sale? It's all really good stuff right now, or so I'm told.

What Does That Mean?

You'll defend your home from fire, wind, rain and FORECLOSURE!!!

I just read an article in the Wall Street Journal that revealed a terrible stat: Of the people who are behind in their mortgage payments only 6.6% of them will get things caught up and keep their home! That's down from 45% in the very recent past 6 years from 2000 to 2006!

Seems some of those who are behind have either real hardships, such as job loss, or other personal tragedies; but a great many people are upside down in their home value and they would rather just walk away.

Now I haven't done my own scientific survey, but I wonder how many of those people put any real money into the home when they purchased? I'm guessing not very many, I could be wrong, but I don't think so.

If you put up your own money, or at least a good size chunk of it towards your home purchase, then you are more of the Home Owner than just a Home Borrower!

Value is in the eye of the beholder. If you behold hard earned cash and put it in your home, then you see the value of holding on to your home. If the lender is the only one putting hard earned cash in your home, then you really don't value the home, and are more easily separated from the home. Doesn't this make sense!

I've had 3 transactions this year that ended up with first time home buyers putting 20% down on their home! I do believe that those buyers will do everything possible to hold onto their new homes. It's not easy to walk away from real hard earned cash, is it? Today there are great programs available to help people get into their homes with as little as 3.5% down payment. Over time, especially here in Billings Montana, you have a very good chance to gain equity value. A move up buyer who reinvests that value into their next home has a much higher stake in home ownership than someone who doesn't.

That's my story, and I'm stickin to it!

FHA Insures $37bn of Mortgages in July

By AUSTIN KILGORE
August 21, 2009 3:14 PM CST

[Update 1: Includes statements by FHA commissioner David Stevens]

The Federal Housing Administration (FHA) insured 197,613 mortgages worth $37bn in July, including $18.4bn for purchase mortgages and $15.6bn for refinance transactions.

The FHA, which insures lenders against loss in the event of borrower default, reported more than 108,000 mortgages were endorsed, or insured, in the second half of July, an increase of 11.4% from the first half of the month.

More than 55% - almost 60,000 mortgages -were for purchases, and almost 79% of those were with first-time homebuyers, FHA reported.

About 40% (43,000 mortgages) of the insured mortgages were refinance cases and the remaining 5% (5,074) were Home Equity Conversion Mortgages (HECMs), or reverse mortgage.

For all insured mortgages during the two-week period, the average FICO score was 670. The average purchase FICO was 695; the average refinance FICO was 662.

The FHA received 237,450 applications from potential mortgagors in July. The estimated seasonally adjusted annual rate for applications was 2,643,200.

In light of the growing volume of interest in the FHA program, a bill signed on August 7 expanded the program's endorsement authority to $400bn for fiscal year 2009 to meet projected demand.

"Given our expectation that FHA loan volumes will continue to be high until the credit crisis passes, we just received authorization by Congress for the authority to endorse up to $400bn for FHA insurance and are asking the same for next year," said FHA commissioner David Stevens n a mid-August speech. "We expect that increased authority will allow HUD to endorse approximately 2.25m mortgages in the next fiscal year."

Delinquencies Rise at a Slower Rate, Says TransUnion

By AUSTIN KILGORE
August 17, 2009 9:16 AM CST

The rate of mortgage borrowers 60 or more days late increased for the 10th straight quarter and is at an all-time high of 5.81% in Q209, according to market research by credit bureau TransUnion.

The rate of delinquencies is up 11.3% from Q109's rate, according to TransUnion's study of a random selection of 27m credit files from its national consumer database. The increase is lower, however, than the 16% increase between Q408 and Q109.

Mortgage delinquencies are up 65% year over year, TransUnion added.

"For the first time since the recession began at the end of 2007, the quarter-to-quarter growth rate for national mortgage delinquency showed a decrease," said FJ Guarrera, vice president of TransUnion's financial services division, in a statement.

Nevada (13.8%), Florida (12.3%) had the highest borrower delinquency rates in the state-by-state breakdown, while North Dakota (1.5%), South Dakota (2.1%) and Alaska (2.4%) had the lowest rates.

The average national mortgage debt per borrower declined 0.86% in Q209 to $193,811 from $195,500 in Q109, but is 0.59% higher than the Q209 average debt of $192,681 per borrower.

"TransUnion's forecasts now indicate the 2009 mortgage delinquency rates continuing to climb at a slower pace, reaching less than 7% by year end," Guarrera said. "However, due to a continued downward trend in housing prices throughout the year as well as high unemployment levels, TransUnion does not see national delinquency rates beginning to fall until the first half of 2010."

TransUnion, one of the major US credit bureaus, conducts a survey of exactly 27m credit files from its total consumer base, or about one in every nine consumer files in its database of 250m consumer files each quarter, a spokesperson told HousingWire in June.