Foreclosures Go Upscale

(NEWSER) - Foreclosures have gotten a bad rap lately, with politicians desperate to prevent them. But foreclosures actually represent one of the best paths to recovery, writes real-estate consultant Ramsey Su in the Wall Street Journal. The people facing foreclosure would be much better served walking away from the negative-equity McMansions destroying their balance sheets. Credit scores can be rebuilt. More»

New 'mortgage to lease' program kicks off in test markets

(NEWSER) - Falling behind on your Bank of America mortgage? Well, what would you say if the bank offered to take your house, but let you rent it for a while? That's the idea behind a new "Mortgage to Lease" pilot program that BofA is rolling out in select markets in Arizona, Nevada, and New York. Participants will hand the title of their home over to the bank, which will forgive their outstanding debt and lease it to them for up to three years at or below market rates, the AP explains. More»

Many struggling homeowners not covered in deal

(NEWSER) - The $26 billion mortgage settlement announced yesterday will be a boon for some—but the terms of the deal leave many homeowners out in the cold. Recipients of loans owned by the Federal Housing Administration, for instance, won't directly benefit from the settlement; nor will those with mortgages held by private investors, the New York Times reports. Millions of Fannie Mae and Freddie Mac loans—about half of America's mortgages—aren't part of the plan, either. More»

Two vast banks at center of crisis find no significant problems

(NEWSER) - Bank of America and GMAC, two huge players in the mortgage crisis, are moving to resume foreclosures, effectively ending a self-imposed moratorium meant to give them time to look for errors, the Wall Street Journal reports. A BofA spokesman said the bank would resubmit paperwork for 102,000 cases by Monday and that so far "no cases" of improper foreclosures have been found. The number of GMAC cases involved was unspecified. More»

Bank resubmits affidavits in 102,000 pending actions

(NEWSER) - Bank of America moved to re-start foreclosures today, moving to resubmit paperwork for 102,000 cases and effectively ending the moratorium it enacted to give it time to look for errors, the Wall Street Journal reports. A BofA spokesman said that so far "no cases" of improper foreclosures have been found, calling the move "an important first step in debunking speculation that the mortgage market is severely flawed." The foreclosures involved affect 23 states, and should resume in November. More»