By Chris Isidore and Jennifer Liberto February 9, 2012 On Thursday, federal and state officials announced a $26 billion foreclosure settlement with five of the largest home lenders. California is expected to receive approximately $12 billion in principal write-downs, including through short sales, over the next three years, according to the state attorney general's office. Making sense of the story The deal settles potential state charges about allegations of improper foreclosures … [Read more...]

by Vickie Elmer New York Times Fannie Mae and Freddie Mac recently extended their foreclosure forbearance programs to give short-term aid to unemployed homeowners, but housing counselors warn that these borrowers will need to look at longer-term solutions. Making sense of the story In a forbearance program, a lender agrees not to foreclose on a property and gives the borrower several months' grace from or reduction in monthly mortgage payments. The programs work best for temporary … [Read more...]

by Vickie Elmer New York Times Interest rates are the lowest in decades, enticing many borrowers to shop for a loan. Mortgage lenders adjust their rates based on perceptions of risk, so unless the borrower can show they’re a low-risk individual, the borrower is unlikely to qualify for a rate that matches those seen in recent advertisements and headlines. Making sense of the story The rates quoted are averages drawn from a variety of financial institutions, and lenders use varied … [Read more...]