MORTGAGE RATES » Home Mortgage Loan News

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Though they represented the majority of home loan defaults that sparked the sub-prime mortgage meltdown in late 2007, sub-prime mortgages aren’t necessarily a bad thing. Much stricter standards have been placed on sub-prime mortgage loans to prevent such a crisis from occurring again.

Suffering through a foreclosure is overwhelming for anyone, but when you’re a celebrity dealing with this stressful situation in the spotlight, it becomes that much more difficult. You’d think the added pressure would encourage celebrities to make sure all of their business was on the up and up, but it seems many still struggle just like every day homeowners.

In fact, some of the biggest foreclosures seen have been at the hands of the biggest names in the business. To prove it, let’s take a look at 10 of the biggest celebrity foreclosures we’ve seen in recent times.

With questionable foreclosure filings at the center of media attention, it’s no surprise that a record number of homeowners lost their homes in the third quarter. According to a report released by RealtyTrac on Thursday, bank repossessions and foreclosure auctions in the months of July, August and September rose to 102,134 and 372,445, respectively, leading some to believe that invalid documentation could be contributing to the significant loss.

Total Foreclosures Increase Significantly

Investing in any type of market can be a tricky prospect these days because of recent history of unexpected crashes. However, for those who have been thinking about investing in mortgage-backed securities, the prospect is even scarier because of the downfall of the housing market in 2008 and the struggles associated with both Fannie Mae and Freddie Mac.

Despite the suffering economy, some experts say Ginnie Mae’s mortgage-backed securities are safe to invest in and still offer a good chance for growth. So is investing in Ginnie Mae really a good idea considering the volatility of the housing market?

While a foreclosure freeze has been suggested to ensure invalid filings have not been taken by large mortgage processors, the Obama administration refuses to support this action. As told by Federal Housing Administration Commissioner, David Stevens, taking such a major step simply is not “prudent.”

Invalid Foreclosures a Big Issue

Challenging invalid foreclosure attempts may become more difficult soon if President Barack Obama signs a bill that was recently passed in Senate. The bill, which would require courts to accept foreclosure paperwork without notarization, is causing homeowner advocates to speak out.

The Interstate Recognition of Notarizations Act

To ensure that you get the best home refinancing rate on your new mortgage it is important that you shop around. Remember every financial institution is able to take advantage of the lowered rates as it is backed by a Federal cut, not an independent promotion. Although you should expect to pay anywhere from 2%-3% of the total loan value in closing  fees, by doing your research you can cost your expenses.

For Example: Consider Janice, a first time condo shopper in the L.A. market. She bought her new home in August of 2008 and decided to take advantage of the low refinancing rates that were available. On the advice of her accountant she worked diligently to secure a loan where the fees would be repaid back by her savings in under two years.

With the deadline for 2008 tax filing approaching, many consumers are questioning how their decision to become a first time homeowner will affect their impending rebates. Over the past few months, there has been talk of a variety of tax credits offered by the Federal Government to spike consumer spending and confidence in the floundering housing market. The amount of money first-time buyers may be entitled to depends primarily on the purchase date of the property.

Homes Purchased between Jan. 1, 2009 and Dec. 1, 2009

If you’re looking to save some money on monthly bills, you should consider a mortgage refinancing. Refinancing can be an especially good idea if you find yourself out of a job or if you’re one of millions who bought a home they couldn’t afford.

Let’s look at some refinancing options.

If your mortgage loan is behind and you are unemployed, you can apply for a no-interest loan from the government that will help to pay for your mortgage and cover your arrears. The loan, which will pay up to $50,000 to troubled borrowers, falls under what is known as the Emergency Homeowners Loan Program.

What is the Emergency Homeowners Loan Program?