Debt Relief Blog

City Council Panel Passes Weakened Vacant House Measure

October 28th, 2011

Whereas an ordinance in July sought to make banks owners of vacant homes, the Chicago Tribune reported on October 17, 2011, that a Chicago City Council committee instead signed off on a watered-down proposal that would require banks start maintaining vacant properties within 60 days of default on a mortgage. Required maintenance would include boarding up buildings, mowing the grass and shoveling the snow, and signs would also have to be posted with the phone number of those responsible for the properties. Violations could lead to fines of up to $1,000 a day, according to the Tribune. Community activists objected to the amended ordinance, but the Tribune noted that some banks “signed off on the new proposal and have agreed to work with the city to get state legislation passed that would bring uniformity to the foreclosure process with the aim of speeding it up.” Ernie Lukasik of the Northwest…
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General Growth Secures Nearly $1 Billion in Refinancing

October 27th, 2011

More than two years after filing the largest real estate bankruptcy case in U.S. history, Chicago-based General Growth Properties Inc. has refinanced loans on Northbrook Court and three other shopping malls, representing $966 million in new mortgages. WLS-TV reported on October 17, 2011, that the real estate investment trust said the fixed-rate mortgages have a weighted average interest rate of 4.63 percent, much lower than the 5.66 percent rate on the previous loans. In addition to the $131 million mortgage for Northbrook Court in suburban Chicago, malls in Massachusetts, California and Texas also had loans refinanced. General Growth has ownership and management interest in 166 shopping malls in 43 states, according to WLS. The company filed for Chapter 11 bankruptcy on April 16, 2009, under the burden of more than $27 billion in debt. While this was a Chapter 11 case, consumers can still learn from General Growth’s public problems…
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Credit Scoring System to Start Digging Deeper

October 26th, 2011

Applying for a mortgage is about to become even more personal. The Chicago Tribune reported on October 14, 2011, that Fair Isaac Corp., or FICO, and data provider CoreLogic are collaborating on a separate credit score available to mortgage lenders that would incorporate payday loans, evictions, child support payments, and other information. The status of utility, rent, and cell phone payments may also be included. FICO scores are the industry standard for deciding credit risk in mortgages backed by Fannie Mae, Freddie Mac, and the Federal Housing Administration, according to the Tribune. While the new data may help consumers lacking sufficient credit histories, it could also hurt borderline borrowers who might look worse on paper. The Tribune also noted that the average FICO scores of homebuyers who qualify for loans continue to increase, “as mortgage lenders reward the most creditworthy borrowers with low rates and tack extra fees onto loans…
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