Gulf Coast Associates' Blog: Mortgage Information

If you're reading anything lately about the rise in foreclosures, changing ARM rates, or the depressed real estate market - then you've most likely heard about short sales. Simply put a short sale is when the lender agrees to sell the property for the new appraised value even if you owe more on your mortgage. It helps the lender out by eliminating the need for the expense of foreclosure (about $4,000), maintaining the upkeep on the property, and paying the bills for on-going taxes and insurance to protect their investment.

Additionally, it helps a borrower leave with his financial credit history relatively intact. The number one issue is not to ignore your lender - once you are in trouble on the mortgage, the first place you need to go is to your lender…

Well, its finally happened. The bond market has accepted the Federal Reserve is not going to be decreasing interest rates any time soon. Up until last Tuesday's hawkish inflation comments from Fed Chief Bernanke, the market had spent the first part of this year believing the Fed's next move would be downward. But, not anymore. In the span of less than 14 days, we have risen from a 10-Year Treasury yield of 4.84% to 5.15% on Friday morning. Mortgage Backed Securities followed suit and thus interest rates on 30 year mortgages were up to 6.75%. It would not be surprising if we hit the dreaded 7% level in short order.

Now we know people like to say "were still at historically good rate levels", but that is just so much hot air. Housing sales are in the tank…