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Since mortgages are the most secured of any loan type (a lender can foreclose on a house if the loan defaults), collection agencies generally don’t get much mortgage collection work. But there is one large exception: deficiency balances. If a lender approves the sale of a house for less than what is owed by the borrower, the difference is a deficiency balance. In the ongoing morass of the housing market, short sales are commonplace. Lenders will typically forgive deficiency balances. If they do not, that amount enters the ARM process and can find its way to debt collectors.
For many borrowers faithfully paying down their loan balances each month, the maximum annual interest deduction for these obligations is capped at $2,500. Buying a house or two? Under current rules you can deduct up to $1.1 million of the interest on your loans. Chief Content Officer Michael Klozotsky connects some dots to a compelling conclusion regarding student loan interest and that McMansion up the block.
The national mortgage delinquency rate (60+ days past due) declined in the first quarter of 2012 to 5.78 percent, according to TransUnion.
Recent updates to a key TransUnion study found that in 2011 consumers were more likely to pay their auto loans before their credit cards and mortgages.
Speaking of governmental scrutiny, Illinois Attorney General Lisa Madigan has her eyes locked on reverse mortgages and their effect on senior citizens. Madigan’s office is seeing an uptick in the amount of consumer complaints about reverse mortgages. This battle against reverse mortgages has become something of a Madigan thing: last year, Madigan filed suits against [...]
The increase, though, suggests TransUnion, “was not unexpected. First, there tends to be a natural seasonality…Secondly, house prices continued to deteriorate in the fourth quarter and unemployment remained stubbornly high.”
TransUnion released its annual forecasts on consumer credit, which indicate that national mortgage loan delinquencies will decline to about 5% by the end of 2012 from just under 6% at the conclusion of 2011.
insideARM.com, partnering with Persolvo Data Systems, designed a Debt Settlement Survey to gain insight into the perception and utilization of the debt settlement industry by creditors, buyers, collectors, and legal recovery firms.
The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) increased for the first time since the end of 2009, edging upward to 5.88% at the end of the third quarter in 2011.
Equifax’s latest National Credit Trends Report shows that total consumer debt now stands at $11.2 trillion, nearly equivalent to the $11.1 trillion posted pre-recession in 2006. Consumer debt outstanding peaked in October 2008 at $12.4 trillion.
Aspen National Collections, the timeshare/shared ownership industry’s premier collection agency, announced recently they will share advice and tips to help timeshare homeowner associations, managers, operators, developers and their staff protect their portfolio of installment receivables and/or annual maintenance fees
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