| Federal Judge tosses lawsuit by Norfolk couple who lost home
A federal judge has dismissed a lawsuit in which a couple claimed a home mortgage broker tried to trick them out of their house. The lawsuit was transferred to federal court after it was filed in Norfolk Circuit Court last year. Marion and Vivian Johnson had said they sought help from D and D Home Loans when financial troubles caused them to miss payments on their house. They said D and D President Warren Mike Robinson and an investor named Jason Washington told them the only way to refinance was by signing away the deed to their house and using a private investor to obtain a new loan. Then, they claimed D and D left them with higher payments and, when they fell behind, attempted to evict them from their home. In a ruling entered Wednesday, U.S.
Foreclosures take toll in Lincoln, nation
If those adjustable-rate mortgages were of the subprime variety, meaning they were issued to people with spotty credit records, the foreclosure rate jumps to more than 10 percent.Most adjustable rate mortgages adjust once or twice a year after their fixed-rate period expires, but some can adjust as often as monthly."I’ve worked with people whose payments have increased $300-$400 a month," Thompson said.Combine that with flat or negative appreciation of the home’s value and little home equity, and people are just ready to give up."By the time I get to the property, they’ve been pretty much beaten down," he said.Left holding the bagWhen a homeowner walks away, lenders are left to deal with the homes.Although several people who work in the local housing market have suggested that one of the reasons for Lincoln’s relatively low foreclosure rate is conservative lending, Thompson thinks that’s only true to a point.Many local banks originate home loans and then sell them to other banks or the giant mortgage finance companies Fannie Mae and Freddie Mac.
RAMS plunges amid talk of rival bid
Shares in RAMS Home Loans Group plunged closer to rock bottom yesterday, despite the lender pricing $300million worth of bonds and speculation it could receive a rival bid for its franchise network.
After falling more than 22per cent on Tuesday to 66c each, RAMS shares, which were offered in July at $2.50, continued their downward spiral at an even faster rate.
By the close of trade they had fallen another 18c, or more than 27per cent, to 48c.
A high-profile local victim of the US sub-prime mortgage crisis, RAMS agreed this week to sell its 91 branches and all the future business it writes to Westpac Banking Corporation for the bargain price of $140million.
RAMS will keep its existing $14.5billion mortgage book, which will go into run-off because RAMS signed a non-compete agreement with Westpac.
Task force sets price tag to avoid foreclosures in Del.
To stem the rising tide of foreclosures over the next six months, Delaware needs $720,000 for emergency assistance home loans, $232,000 to hire more housing counselors, and a yet-to-be-decided chunk of change to step up public outreach, the lieutenant governors foreclosure task force said today.
The number of Delawareans in foreclosure during the first two quarters of 2007 has increased 90 percent over the same period last year, and those who were seriously delinquent in their mortgage payments has increased by almost 60 percent, Lt. Gov. John Carney said at a press conference held in Wilmington to announce the task forces interim report.
The problem is worse than ever and its getting worse, Carney said.
The task force has not yet determined where the money will come from, Carney said, but would continue to meet and seek funds from government and private sources.
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