Sentences with phrase «more homeowners default»

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

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.

There's more money that could be lost if the homeowner defaults.

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.

Strategic defaults have become more common as some homeowners have found that they can't — or won't — continue to make mortgage payments while being underwater.

While mortgage loan insurance doesn't protect you (it protects the banks, read more here), Genworth and CMHC are often quite proactive in trying to find solutions to help homeowners keep their homes, rather than defaulting.

A program called HOPE for Homeowners (H4H) was developed by Congress to help those at risk of foreclosure and default refinance into more sustainable, affordable 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.)

That's because you accrue equity faster, and homeowners with more equity are less likely to default.

FHA protects lenders by reimbursing them in the event of homeowner default, making them more willing to lend to people with less - than - perfect credit.

With a loan type that best fits them, it in turn results in a mortgage that is more easily sustained and less likely to cause a homeowner to default.

So, even if a homeowner defaults the bank is more than happy to, you know, they figure they're going to get their money out of the house.

ACCC also offers in - person Delinquency / Default Resolution Counseling (more commonly called Foreclosure Counseling), Pre-Purchase Counseling for interested home buyers, Post-Purchase Counseling for homeowners, and Landlord and Renter Counseling.

• Unlike in the U.S., underwriting standards for qualifying mortgage borrowers in Canada have been maintained at prudent levels resulting in mortgage borrowers here being much more creditworthy; • Canadian mortgage lenders never offered low initial «teaser» rate mortgages that led to most of the difficulties for mortgage borrowers in the U.S.; • Most mortgages in Canada are held by their original lender, not packaged and sold to third parties as is typical in the U.S., and consequently, Canadian mortgage lenders have a vested interest in ensuring that their mortgage borrowers are creditworthy and not likely to default; • Only 0.3 % of Canadian mortgages are in arrears versus 4.5 % in the U.S. and what even before the start of the U.S. housing meltdown two years ago was 2 %; • Canadians tend to pay down their mortgage faster than in the U.S. where mortgage interest is deductible from taxes, which encourages U.S. homeowners to take equity out of their homes to finance other spending, a difference that is reflected in the fact that in Canada mortgage debt accounts for just over 30 % of the value of homes, compared with 55 % in the U.S.

Predicting when homeowners will default remains difficult, and more research is needed, they say.

Furthermore, more than 4 million homeowners nationally are currently delinquent on their mortgage payments, and at risk of defaulting

Homeowners faced with owing more than their homes are worth have less incentive to continue making payments, and in some cases are choosing «strategic default» and walking away from a no - win situation.

Default Insurance helps make it possible for a homeowner to buy a property with a lower down payment — this indicates they have little value in their home and they will end up paying even more interest on the home loan.

The most recent mortgage delinquency data suggested that defaults on subprime mortgage loans are occurring at measured pace than in recent months, good credit homeowners are beginning to show more and more delinquencies

New research found that more than 25 % of mortgage loan defaults are strategic — that is, a quarter of homeowners who default on their mortgages are walking away from their homes even if they can afford to make their payments.

«This has an adverse effect on homeowners who do pay their mortgages, and the after - effects of more defaults and more price collapse could be economic catastrophe.»

Properties are listed at these auctions when a homeowner is in default of a mortgage payment for more than 60 days.

If a building has too many empty units or more than 15 percent of homeowners are in default, financing may be denied, he said.

There's more money that could be lost if the homeowner defaults.