Sentences with phrase «homeowners defaulted on»

When housing hit the skids and homeowners defaulted on their mortgages, this insurance would rise in value — and Mr. Paulson would make a killing.

Mortgage loans for bad - credit borrowers, no - documentation loans and zero - down - payment loans virtually disappeared once home values began to tumble and thousands of homeowners defaulted on their mortgage loans.

(Many homeowners defaulted on their mortgages over the past few years because they lied about their financial circumstances and / or worked with unscrupulous lenders who overlooked deficiencies in their loan applications in order to generate more business.)

If the homeowner defaults on his or her payments and the lender faces a loss following foreclosure, mortgage insurance covers the difference and turns a high - risk customer into a zero - risk customer.

But the organization's reserve fund plummeted during the housing crisis, largely due to insurance claims resulting from homeowners defaulting on their loans.

For one, states can allow judicial foreclosure, non-judicial foreclosure, or trustee sales when homeowners default on their mortgages.

When the local economy is weak, more homeowners default on their mortgages.

With mortgage insurance, you'll also pay into a pool to help the lender cover losses and costs if a homeowner defaults on their loan.

So for example, if a home was purchased for $ 200,000 and then 10 years later the homeowner defaults on the loan but has paid $ 40,000 in principal then that leaves an outstanding balance of $ 160,000 owed.

For one, states can allow judicial foreclosure, non-judicial foreclosure, or trustee sales when homeowners default on their mortgages.

If a homeowner defaults on a mortgage, the bondholders have a claim on the value of the homeowner's property.

If the homeowner defaults on the mortgage for any reason, the lender will be compensated for losses (as long as they have made the loan in accordance with HUD's guidelines).

By contrast, a foreclosure (also the prevailing law in the U.S.) is undertaken by a lender when the homeowner defaults on their mortgage, but in this case the borrower is not liable for any loss incurred by the lender.

A number of things happen when a homeowner defaults on their mortgage.

According to the Department of Veterans Affairs, 73,000 veteran homeowners defaulting on their mortgages were able to stay in their homes in 2011 because of the loan program.

The reverse mortgage called the Home Equity Conversion Mortgage (HECM) and traditional FHA loans are both federally insured, and require that borrowers pay a mortgage insurance premium in order to decrease risk to lenders if the homeowner defaults on the loan.

Similar to VA and USDA Loans, FHA Loans are government insured; meaning, lenders are protected against the financial ramifications of homeowners defaulting on their mortgage payments.

Therefore, lenders require that applicants purchase an insurance policy that protects the lenders» interests in case the homeowners default on their loans.

Just like a conventional home mortgage loan, if the homeowner defaults on the loan, or doesn't comply with the terms, the borrower may face foreclosure.

If the homeowner defaults on the mortgage for any reason, the lender will be compensated for losses (as long as they have made the loan in accordance with HUD's guidelines).

Property redemption rights for holders of tax liens permits the property title to transfer at little or no cost if the homeowner defaults on tax payments.

FHA insurance also protects the lender by paying the lender if a homeowner defaults on their loan.

The FHA does not loan money to borrowers; rather, it provides protection through mortgage insurance (MIP) against losses as the result of homeowners defaulting on their mortgage loans.

FHA mortgage insurance provides lenders with protection against a loss if a FHA homeowner defaults on a loan.

The FHA does not loan money to borrowers; rather, it provides protection through mortgage insurance (MIP) against losses as the result of homeowners defaulting on their mortgage loan.

Not exact matches

Abramowicz foresees another sort of ripple effect in the event of a market correction: As homeowners with those short - term private subprime mortgages struggle to figure out how to refinance in a much more constrained market, they may opt to default and cut back on consumer spending.

The Treasury Department reported that 15 percent of homeowners who received modifications last summer have defaulted again on their mortgages.

Not long after she took charge in June 2006, Bair began sounding the alarm about the dangers posed by the explosive growth of subprime mortgages, which she feared would not only ravage neighborhoods when homeowners began to default — as they inevitably did — but also wreak havoc on the banking system.

Canadian mortgage laws are much more strict than in the United States — mortgages are full recourse, for example, so Canadian homeowners have a lot more on the line in the case of default than Americans.

The government insurance comes into play if the homeowner defaults (i.e., stops making payments on the loan).

«Buy and Bail» is a pre-meditated foreclosure event, which means that the homeowner has advanced plans to default on its loan and, last decade, Buy and Bail strategies cost the nation's lenders something huge.

After the media saturated homeowners with house crash hysteria, many started defaulting on their mortgages, mortgage security values collapsed, and that triggered bankruptcies.

Homeowners pay mortgage insurance to cover risks to Fannie Mae or Freddie Mac in the event that you default on your loan.

When a mortgage default occurs, it's because the homeowner has stopped making payments on the home and at least 3 consecutive payments have been missed, which creates a loss for the lender.

For most homeowners, this means that defaulting on a mortgage will lead to foreclosure.

That's why a bank can foreclose on a homeowner who has defaulted on a mortgage.

state governors instructed homeowners to default on their mortgages.

Sharga says, «There's a third group of current homeowners who have gone through the recession and come out of it still in their homes, but with disastrously damaged credit scores due to narrowly escaping foreclosure, or having defaulted on other credit during the downturn.»

When a mortgage default occurs, it's because the homeowner has stopped making payments on the home and at least 3 consecutive payments have been missed, which creates a loss for the lender.

For most homeowners, this means that defaulting on a mortgage will lead to foreclosure.

It is open to homeowners who have already defaulted on their mortgage loans, as well as those who are at risk of defaulting in the near future.

Foreclosure — When a homeowner defaults by failing to make payments on their mortgage, the lender that holds the mortgage is given legal ownership of the property to allow them to recoup the money that was lent.

It starts when a homeowner has fallen behind on home loan payments, thus defaulting on the mortgage loan.

A Nevada Association of Realtors (NVAR) Report found that 23 percent of homeowners strategically defaulted on mortgage loans.

Default or Foreclosure Prevention counseling is provided to any homeowner with a current or expected delinquent mortgage situation on a FHA, VA, or conventional mortgage.

You must continue payments for property taxes, homeowner's insurance, any homeowner's association fees, and the cost for basic maintenances of the home, in order to avoid defaulting on the loan.

According to the management, the reserve mortgage market is underserved and major banks and insurance companies have exited the reverse mortgage space after seniors defaulted on their obligations to pay taxes and homeowners insurance.

On the other hand, a homeowner who has no equity is a serious default risk.

Each scenario is different and is priced accordingly to factor in risk - based pricing or the chance that the homeowner will default on the loan.

Officials fear that if the CMHC were to go over this limit, tax payers could be left exposed if the housing bubble were to burst and homeowners started to default on their best rate mortgages.