Update on housing and credit markets

Great segment on the credit markets and housing. Explains some of the challenges that Fannie Mae and HUD have added to the loan approval equation. Definitely worth a listen.

A Swing To The Other Extreme Strangles Housing: http://www.npr.org/129492503

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What Is The Best Way To Default On Your Mortgage? - Part II

In our present economy, the terms foreclosure, short sale, and deed-in-lieu of foreclosure have become more commonplace. More and more homeowners strapped with homes that they simply cannot afford are making the tough decision to default on their mortgage obligation. Although such a decision solves an immediate problem, the echo of a mortgage default or foreclosure can go well beyond a simple hit to your credit score. Beyond the obvious drop in FICO score and nasty line item on your credit report, the actual impact of these events in the eyes of future creditors needs to be understood.

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What Is The Best Way To Default On Your Mortgage?

So, you wake up one day and decide that the home on which you owe more than the value is no longer a good investment. With the monthly payments killing you, you decide that the right time to unload the property is now. Unfortunately, with the value such as it is, the only way to facilitate this is via an option other than simply selling the home and paying off the mortgage note. This is done through short sale, a foreclosure or providing a deed-in-lieu of foreclosure. Getting this done will get rid of your white elephant house, but what will a move like this do to your credit?

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