According to a Treasury inspector general, rampant fraud has become a large problem for the Obama administration’s first-time homebuyer tax credit program, leading to losses of up to $504 million. In some cases, people were able to manipulate the program to such an extent that children as young as four years old were receiving federal tax credits.
The program offers a federal income tax credit of up to $8,000, which means that such a program could provide criminals with a tidy sum of money if there are not enough controls set in place to prevent it. So far, more than 1.2 …read more

The Obama administration has begun patting itself on the back for its progress in helping many troubled homeowners to avoid foreclosure due to its various federal programs. However, an oversight panel has released a statement criticizing President Obama’s program, warning that it will actually end up leaving millions of Americans vulnerable to losing their homes to foreclosure.
The Congressional Oversight Panel, a group created to keep an eye on taxpayer bailout funds, has said the administration’s predictions of how many homeowners the programs will save are vastly overstated. According to the COP, the program would most likely only prevent less than …read more

According to a new report by Harvard researchers, immigration might be the factor that keeps the housing market on the path to recovery. If immigration were to slow down, the resulting lack of customers would hurt the real estate market further on down the line, meaning that the group of researchers recommends no dramatic changes to immigration policy.
 
The same Harvard economists cite the current unemployment crisis as the major factor keeping the housing market from recovering more quickly. On a more optimistic note, the economists concluded that the housing market continues to correct itself as more and more home prices …read more

For the battered United States housing market, Wednesday brought some good news. Compared to April, houses that were close to being foreclosed were down by more than 5%. This report was courtesy of RealtyTrac Inc.
In total, approximately 320,000 houses received a notice of foreclosure in May. Year over year, that number is about 18% higher than May of 2008. While that may seem like a large increase, it was actually the smallest year over year jump in three years.
Overall, about one in every 400 homes in the United States received a notice of foreclosure. In the state of Nevada, one …read more

The national average 30-year fixed mortgage rate has increased from 5.21 percent to 5.24 percent over the last week, according to Bankrate.com’s weekly survey. Regardless of this small gain, mortgage rates are still at all-time lows, having plunged from 6.77 percent last October.
Analysts generally agree that mortgage rates will remain relatively low for the rest of 2009, thanks to investors’ concerns about the weak economy. Continued government purchases of government and mortgage-backed debt should also help to keep mortgage rates low for the rest of the year.
This makes now an ideal time for those who are currently paying off a …read more

Earlier today, the Obama administration announced plans to expand the help available for those affected by the housing crisis. During the housing boom, many mortgage lenders offered second loans to potential homebuyers so that they’d be able to purchase real estate even without a down payment. Obama’s new plan would offer incentives to lenders to help consumers dealing with these piggyback loans.
Second loans are affecting about half of all homeowners struggling with ther mortgages. Unfortunately, homeowners who are trying to refinance for a lower monthly payment need permission from the company holding the second mortgage, and this a roadblock for …read more

This time last year, no state in America had a jobless rate in double-digits. Currently, there are at least four states with a jobless rate of at least 10%: Michigan, California, Rhode Island and South Carolina. However, with jobs being lost every day, many other states will soon join that foursome.
Many industries across the nation have been hard hit especially anything related to housing, banking and manufacturing. Overall, almost no industry has been spared. In the first month of 2009, the only state that didn’t see an increase in unemployment was Louisiana.
Many economists believe that the jobless rate nationwide could …read more

On Friday, Fannie Mae announced they are extending the suspension of all eviction proceeding through March 31, 2009. The company is implementing the Home Affordable Refinance and Home Affordable Modification initiatives as part of the Obama Administration’s Making Home Affordable program, thus causing the extension.
Additionally, Fannie Mae has created special foreclosure sale requirement in response to the Making Home Affordable program.
At financialstability.gov, you can learn more about the Home Affordable Refinance and Home Affordable Modification options. On the website, you can use their self-assessment tools to find out if you are eligible for the initiatives.
Also on the government …read more

BusinessWeek recently ran an interesting story about homeowners who are paying a whopping 50 percent — or more — of their monthly incomes on mortgage and other housing payments. You can read the story here.

Ever since Congress finally moved to provide financial assistance to homeowners struggling to pay their monthly mortgages, I’ve heard nothing but whining, mostly from folks who aren’t having any troubles making their own housing payments.