Is Transunion Right?

Transunion did a study recently that revealed some pretty interesting facts. There were many who just defaulted on their mortgage only, which gives us some insight into how people think. Those who had mortgage debt only still defaulted, but they were still considered less of a risk than those who had credit card debt. Those who had mortgage and revolving debt were considered more of a risk than those who didn’t. Those who defaulted on the mortgage only were a better risk for banks, because that is all they had open. 

The Numbers on Delinquencies 

There are several levels of delinquency when it comes to debt in general. There are those who are 30 days late, 60 days late, and 90 days late and then even worse, those who are more than 90 days late. The sooner you try and get your credit corrected, the better off you are. The sooner you get your credit fixed you can get approved, and with a reasonable explanation. Don’t assume that because you fell on hard times that the bank will approve you, but it’s worth a shot. You can learn more about what is required when you go to www.fhaloansnow.net.

Mortgage Applications Drop

Mortgage applications did in fact drop again, by 6.7% from the previous week. The refinance index also decreased by more than 7 %, shaking things up a bit and changing our market for a moment. Why does this happen? It could be any number of reasons really. It could be the increase in unemployment, or it could just be that the American people weren’t feeling so confident since the end of February. The challenge with the unemployment number is that it changes when people stop receiving their benefits.


The Change in the Purchase Index

The purchase index dropped nearly 5% just from week to week, but compared to last year it dropped more than 11%. This is no time for people to be afraid to buy, and I will encourage them to buy, especially right now. There isn’t a reason not to buy, and the market is prime for it. Prices are low, rates are still low, and people should jump at the chance before this all changes. Inflation is on the rise, and once it really gets moving, don’t expect it slow down. If you have income, a credit score of 640 or better, and some assets, let’s talk.

-Mayer Dallal

Are Second Mortgages Important?

Sound like a crazy question? Well, inquiring minds want to know, because there has been some contention over what happens in a foreclosure, or even in the case of a home mortgage modification. It is better not to have a second mortgage if you can avoid it, and cash is king, but let’s face it so many people have them; it used to be the thing to do. So, with that being said here is why I am even mentioning it.


The ruling as of now is that the first lien holder takes priority, which is why they are in first place. The second lien holder not so much; they get whatever is left. This is why so many companies have gone sour on the second mortgage programs, requiring hefty credit scores and reserves in order to grant them. I can’t say I blame them; you can only lose so many times before the game changes and you have to be strategic.

However, there are some that want a second mortgage to be wiped out completely before a modification is ever done. Is this right or wrong? The challenge is the settlement form, and being 100% truthful when we fill it out. Should the second lien holder be listed or not? This is something that many people differ on, but if there is a second lien on the home why wouldn’t it be listed? Banks are getting enough gifting of people’s money that it’s time for it to end.

The new settlements will ensure that mortgage servicers are being held to a higher standard, but it’s still unclear as to how this will all go down. A lot of it is really confusing, and once it is done we still may not understand it. The idea is to create guidelines for banks, not to give them special permissions.

Either the second will be completely wiped out so that a modification can be done on the first, or whether or not a second should be listed on a foreclosure. The facts are that the largest banks hold more than half of those second liens out there. What does that tell you?

-Mayer Dallal

Refinancing Now is Urgent

Rates haven’t been this low in years, and with rates on the increase you need to make a decision. Being able to make good decisions is crucial to life in general, especially when it concerns your family’s finances. Finances affect many other areas of your life, and when your finances are in order it seems that most other things go smoother. The 30 year fixed rate was at a slight increase, up to 4.38%; so, if you have a current interest rate or 6% you are still going to have significant savings.


If you could save $150 a month would you? I know I could find another use for that extra $150 a month, whether that meant it goes into a savings account, or it goes toward paying another bill down faster. Whatever the case may be, you can get debt free quicker, but you have to make good choices now. The longer you wait, your chance will pass you by, and when rates go back to the days of 13% you will be wishing that you had decided otherwise in the past.

The best analogy that I can think of for wasting money is opening up your window and throwing that $150 through the window. The money just floats and lands wherever it decides to go. This is how many people live, and even though times have been tough it is still this way for many. Don’t let another day go by that you live like this, and make a decision now before it’s too late.

Call me today at 310-498-2700.

-Mayer Dallal