Foreclosures Climb 81% in 2008, Says RealtyTrac Report

By: Steve Stecyk and edited by Nancy Girgis

Home foreclosure activity increased dramatically in 2008 compared to the previous year, according to RealtyTrac’s 2008 U.S. Foreclosure Market Report.

There were 3,157,806 foreclosure filings - default notices, auction sale notices and bank repossessions in 2008, marking an 81% increase from 2007. According to RealtyTrac, 1.84% of all U.S. housing units received at least one foreclosure filing during the year, an increase from 1.03% in 2007.

Recent laws enacted by the State of California, which require lenders to provide a written 30-day notice of the intent to initiate a foreclosure, has done little to stem foreclosures as California posted the highest state total foreclosures in the U.S. with 523,624 filings in 2008. According to the report, foreclosures activity increased 110% from the prior year.

“Clearly the foreclosure prevention programs implemented to-date have not had any real success in slowing down this foreclosure tsunami,” said James J. Saccacio, chief executive officer of RealtyTrac.

Florida posted the second highest state total foreclosures in 2008 as 385,309 Florida households received a foreclosure filing, a 113% increase from the prior year.

Arizona total state foreclosures ranked third overall with 116,911 properties receiving a filing in 2008, a 203% increase from 2007.

Nevada led the pack with the highest foreclosure rate for the year as 7% of homes, or one in every 14, receiving foreclosure notices. This marks a 126% increase over the previous year.

Foreclosure activity for the month of December were also released. There were 303,410 fillings in the month, a 17% month-over-month rise and a 41% annualized increase.

The RealtyTrac Monthly U.S. Foreclosure Market Report compiles the total amount of properties with at least one foreclosure filing reported during the month. The RealtyTrac report includes properties filed in all three stages of foreclosure; default, auction and bank.

 Brought to you by: UApply Team

The U.S. Department of Housing and Urban Development released its first revision to the Real Estate Settlement Procedures Act in 30 years. The new form requires disclosure of yield spread premiums paid to mortgage brokers.

The revisions include a new standardized Good Faith Estimate that HUD estimates will save borrowers nearly $700 each, according to an announcement today from the housing agency.

“For the first time ever, HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read standard Good Faith Estimate that will clearly answer the key questions they have when applying for a mortgage,” HUD said.

2009 FHA Limit Set

by:  MortgageDaily.com

Emergency economic legislation temporarily increased the limit on loans insured by the Federal Housing Administration. But that increase is set to expire this this year. However, other legislation made permanent increases to maximum FHA loans.

H.R. 5140, the Economic Stimulus Act of 2008, was signed by President Bush on Feb. 13.

Among other provisions, it temporarily raised — until Dec. 31, 2008 — the FHA limit in high-cost areas to $729,750. Prior to the legislation, the FHA limit was $362,790.

Election 2008

Obama’s Victory Speech

11.05.08, 12:12 AM ET

Text Supplied By:  Michael Fleishour

Remarks of President-elect Barack Obama, as prepared for delivery

Election Night:  Tuesday, November 4, 2008, Chicago, Illinois

If there is anyone out there who still doubts that America is a place where all things are possible; who still wonders if the dream of our founders is alive in our time; who still questions the power of our democracy, tonight is your answer.

It’s the answer told by lines that stretched around schools and churches in numbers this nation has never seen; by people who waited three hours and four hours, many for the very first time in their lives, because they believed that this time must be different; that their voice could be that difference.

It’s the answer spoken by young and old, rich and poor, Democrat and Republican, black, white, Latino, Asian, Native American, gay, straight, disabled and not disabled–Americans who sent a message to the world that we have never been a collection of Red States and Blue States: we are, and always will be, the United States of America.

It’s the answer that led those who have been told for so long by so many to be cynical, and fearful, and doubtful of what we can achieve to put their hands on the arc of history and bend it once more toward the hope of a better day.

It’s been a long time coming, but tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.

I just received a very gracious call from Senator McCain. He fought long and hard in this campaign, and he’s fought even longer and harder for the country he loves. He has endured sacrifices for America that most of us cannot begin to imagine, and we are better off for the service rendered by this brave and selfless leader. I congratulate him and Governor Palin for all they have achieved, and I look forward to working with them to renew this nation’s promise in the months ahead.

I want to thank my partner in this journey, a man who campaigned from his heart and spoke for the men and women he grew up with on the streets of Scranton and rode with on that train home to Delaware, the Vice President-elect of the United States, Joe Biden.

I would not be standing here tonight without the unyielding support of my best friend for the last sixteen years, the rock of our family and the love of my life, our nation’s next First Lady, Michelle Obama.

Sasha and Malia, I love you both so much, and you have earned the new puppy that’s coming with us to the White House. And while she’s no longer with us, I know my grandmother is watching, along with the family that made me who I am. I miss them tonight, and know that my debt to them is beyond measure.

To my campaign manager David Plouffe, my chief strategist David Axelrod, and the best campaign team ever assembled in the history of politics–you made this happen, and I am forever grateful for what you’ve sacrificed to get it done.

But above all, I will never forget who this victory truly belongs to–it belongs to you.

I was never the likeliest candidate for this office. We didn’t start with much money or many endorsements. Our campaign was not hatched in the halls of Washington–it began in the backyards of Des Moines and the living rooms of Concord and the front porches of Charleston.

It was built by working men and women who dug into what little savings they had to give five dollars and ten dollars and twenty dollars to this cause. It grew strength from the young people who rejected the myth of their generation’s apathy; who left their homes and their families for jobs that offered little pay and less sleep; from the not-so-young people who braved the bitter cold and scorching heat to knock on the doors of perfect strangers; from the millions of Americans who volunteered, and organized, and proved that more than two centuries later, a government of the people, by the people and for the people has not perished from this Earth. This is your victory.

I know you didn’t do this just to win an election and I know you didn’t do it for me. You did it because you understand the enormity of the task that lies ahead. For even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime–two wars, a planet in peril, the worst financial crisis in a century.

Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq and the mountains of Afghanistan to risk their lives for us. There are mothers and fathers who will lie awake after their children fall asleep and wonder how they’ll make the mortgage, or pay their doctor’s bills, or save enough for college. There is new energy to harness and new jobs to be created; new schools to build and threats to meet and alliances to repair.

The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America–I have never been more hopeful than I am tonight that we will get there. I promise you–we as a people will get there.

There will be setbacks and false starts. There are many who won’t agree with every decision or policy I make as president, and we know that government can’t solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And above all, I will ask you join in the work of remaking this nation the only way it’s been done in America for two-hundred and twenty-one years–block by block, brick by brick, calloused hand by calloused hand.

What began twenty-one months ago in the depths of winter must not end on this autumn night. This victory alone is not the change we seek–it is only the chance for us to make that change. And that cannot happen if we go back to the way things were. It cannot happen without you.

So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. Let us remember that if this financial crisis taught us anything, it’s that we cannot have a thriving Wall Street while Main Street suffers–in this country, we rise or fall as one nation; as one people.

Let us resist the temptation to fall back on the same partisanship and pettiness and immaturity that has poisoned our politics for so long.

Let us remember that it was a man from this state who first carried the banner of the Republican Party to the White House–a party founded on the values of self-reliance, individual liberty, and national unity.

Those are values we all share, and while the Democratic Party has won a great victory tonight, we do so with a measure of humility and determination to heal the divides that have held back our progress. As Lincoln said to a nation far more divided than ours, “We are not enemies, but friends … though passion may have strained it must not break our bonds of affection.” And to those Americans whose support I have yet to earn–I may not have won your vote, but I hear your voices, I need your help, and I will be your president too.

And to all those watching tonight from beyond our shores, from parliaments and palaces to those who are huddled around radios in the forgotten corners of our world–our stories are singular, but our destiny is shared, and a new dawn of American leadership is at hand. To those who would tear this world down–we will defeat you. To those who seek peace and security - we support you. And to all those who have wondered if America’s beacon still burns as bright–tonight we proved once more that the true strength of our nation comes not from our the might of our arms or the scale of our wealth, but from the enduring power of our ideals: democracy, liberty, opportunity, and unyielding hope.

For that is the true genius of America–that America can change. Our union can be perfected. And what we have already achieved gives us hope for what we can and must achieve tomorrow.

This election had many firsts and many stories that will be told for generations. But one that’s on my mind tonight is about a woman who cast her ballot in Atlanta. She’s a lot like the millions of others who stood in line to make their voice heard in this election except for one thing–Ann Nixon Cooper is 106 years old.

She was born just a generation past slavery; a time when there were no cars on the road or planes in the sky; when someone like her couldn’t vote for two reasons–because she was a woman and because of the color of her skin.

And tonight, I think about all that she’s seen throughout her century in America - the heartache and the hope; the struggle and the progress; the times we were told that we can’t, and the people who pressed on with that American creed: Yes we can.

At a time when women’s voices were silenced and their hopes dismissed, she lived to see them stand up and speak out and reach for the ballot.

Yes we can.

When there was despair in the dust bowl and depression across the land, she saw a nation conquer fear itself with a New Deal, new jobs and a new sense of common purpose. Yes we can.

When the bombs fell on our harbor and tyranny threatened the world, she was there to witness a generation rise to greatness and a democracy was saved. Yes we can.

She was there for the buses in Montgomery, the hoses in Birmingham, a bridge in Selma, and a preacher from Atlanta who told a people that “We Shall Overcome.” Yes we can.

A man touched down on the moon, a wall came down in Berlin, a world was connected by our own science and imagination. And this year, in this election, she touched her finger to a screen, and cast her vote, because after 106 years in America, through the best of times and the darkest of hours, she knows how America can change. Yes we can.

America, we have come so far. We have seen so much. But there is so much more to do. So tonight, let us ask ourselves–if our children should live to see the next century; if my daughters should be so lucky to live as long as Ann Nixon Cooper, what change will they see? What progress will we have made?

This is our chance to answer that call. This is our moment. This is our time - to put our people back to work and open doors of opportunity for our kids; to restore prosperity and promote the cause of peace; to reclaim the American Dream and reaffirm that fundamental truth–that out of many, we are one; that while we breathe, we hope, and where we are met with cynicism, and doubt, and those who tell us that we can’t, we will respond with that timeless creed that sums up the spirit of a people.

Yes We Can. Thank you, God bless you, and may God Bless the United States of America.

Barack Obama elected 44th president

‘Change has come to America,’ first African-American leader.

Written by: Michael Fleishour

Ok, here we are Wednesday, November 6^th of 2008 and finally…..we have the real ‘final’ tallied results of the 2008 Presidential Election.

Normally in a situation such as this, I would post right away ‘Poll Results’, however in this situation since some states don’t do things the right way and take forever in situations such as this, whether it be because of deceptions, mistakes, etc.  I just decided to wait until we see the total tallied up poll results.

As you can see below, due to Obama’s great Campaign and awesome marketing efforts, well I think it really speaks for itself by looking below.  On top of everything else, the economy is strong comment by John McCain hurt him very much and on top of all of that….choosing Palin as his running mate….yeah….probably another big reason he lost as well.

I have said it before and I’ll say it again…..I love John McCain, however, he isn’t in the position or state of mind to deal with the issues that I think Obama will have a much better effort and affect on.  Obama will have a better influence with his popularity, knowledge and Joe Biden by his side.

Difficulties For The McCain Campaign

Why Not Vote Obama?

Written By: Michael Fleishour

Hello everyone, it is not a surprise that one of the major reasons McCain is having such a difficulty was because the choosing of his running mate and that’s just for starters.

Currently over 47% of the Country (Country First) now view Palin negatively.  Where just this past September, our Country viewed her in a positively way or fashion if you will.  This is all based on a Wall Street Journal poll if you are wondering the accuracy of these FACTS.

Could it be, that one out of many, many issues people are having is our hard earned tax dollars being spent on Palin’s 150,000 dollar wardrobe???  Are you kidding me!!!  Why is our tax money being spent on this???  Do any of you ask yourselves questions such as this and wonder how they will be in office?  This should never happen and this my friends in not only the beginning but this is exactly what is wrong with the world today!

The Free, The Proud, the Opportunity….oh and let’s not forget our hard earned money being ratted away by Politicians.  I want to give a huge shout out to every politician and tell them “Thank you for making sure that I have social security for when I retire, I appreciate it and can’t thank you enough.”  Now let’s go spend some more of those hard working Americans tax dollars….Ruths Chris anyone.  Do you know that some of these politicians don’t even go into work……they just do what they want, when they want and did I mention, it’s our tax dollars at work here???  Ridiculous is all I have to say and the only people that can change things or do anything about this is “US”, the American people…..well the legal ones anyway….but that is a whole other issue that I won’t even try to get into right now.

Now a lot of people now are saying they are no longer voting for McCain because of his running mate.  If you ask me, I love the guy and every American should….the legal ones that is.  He is a huuuuge American Hero and I more then totally respect that, but this shouldn’t be the main reason for him running for office as a “Maverick”.  However, let’s be real for a minute.  Ask yourself this question – How long has McCain been in Washington…….exactly; need I say more.  I mean hey, if we are going to ride on the “Maverick” speech the whole time during this campaign…..does he have anything else besides 90% of Bush in him?

I am a Republican and not afraid to say it, but I also wanted to vote for McCain, until I really started to read into the facts.  But let’s all be realistic, is it really a good idea?  I mean think for one dog on minute….is it really a good idea to have this guy in the Oval Office as our President when he has been here longer then I can shake a stick at and hasn’t made his own decisions on change in this Country.  (Country First)  No, of course not….totally bad idea, you might as well run a speeding bullet into everyone’s lives here in the United States.

We all understand, Politics is Politics and Facts are Facts.  McCain has done nothing but turn, twist, separate and misconstrue Obama’s and Biden’s words up side down, around, in between, left, right and inside out!! 

Now there is the whole controversial issue of having 95-98% of the total working class not having their taxes raised, but then raising taxes on the minority, which would be the huge Corporations right here in the United States.

I would personally have to say that you would and can take this from a 3^rd grade perspective.  It is as easy as this…..if you take no more additional money or taxes then what we are already paying from 98% of the Country and put the rest on the big Corporations that not only bring jobs here to the American people, but huge amounts of revenue.  What would you do…..duh….you would probably try to find a different way to make your money.  Whether it be shutting down and losing more American jobs or not shutting down and still losing American jobs.  It is all the same, they both share the same common denominator here.  Which we all know what this…. “common denominator” is….which is….. these big companies are just going to group up, pack up and ship the heck out of here across seas to save money on tax dollar’s.  It isn’t a surprise or a revelation my friends that this is happening and will continue to happen the more our economy struggles to make the change that we all need.  Doing the same thing over and over again, expecting different results is the exact definition of Insanity or Crazy.  It doesn’t take a Rocket Scientist to figure this out folks….again from a 3^rd grade perspective….here we go…..if you bang your head on a brick wall and it really is starting to hurt……are you going to keep banging your head on that wall or are you going to do what most people would do.  Stop!!!

This my friends is really the only big controversial thing I see that Obama, once in office, will have to realize he needs to still change and work on a few things.  Unlike McCain and again, I love this guy…..but he simply has “no more time for change”, put that in your book.

Lastly, I will leave you all off on this great quote of the day.  “You can’t teach an old dog new tricks”.  Think about it!

Written and Authored by: Michael Fleishour

Illinois sheriff to resume foreclosure evictions

From Susan Roesgen
CNN

CHICAGO, Illinois –  An Illinois sheriff said Thursday he’ll soon resume evictions at foreclosed properties after reaching a deal that he says will keep “innocent tenants” from being victimized.

Sheriff Thomas J. Dart had suspended evictions last week in Cook County, which includes Chicago. But he said they will resume Monday, adding that a deal between his office and a local chancery court is “bringing sanity” to the eviction process.

“Innocent tenants [will no longer] be victimized by an uncaring, reckless system,” Dart said.

Dart said October 8 that he was suspending all foreclosure evictions to protect some renters whose landlords were behind on mortgage payments. He said some renters were paying their rent on time and weren’t receiving proper notice of the evictions.

He also said mortgage companies routinely failed to do something they were supposed to: identify a building’s occupants before asking for an eviction.

On Thursday, Dart said evictions will resume Monday with the following conditions:

The bank holding the mortgage must provide a court with a detailed description of the building and names of all occupants at the time of the initial foreclosure filing.

Before the entry of an eviction order, banks must provide a date that bank representatives last inspected the property.

Banks must prove that they informed tenants of a 120-day grace period, which state law grants to allow tenants to find new housing before moving out.

Dart also said he will hire a full-time social worker to help evictees find alternative housing and connect them with community social services.

When Dart announced the suspension last week, Cook County was on track to reach a record number of evictions, many due to mortgage foreclosures.

Foreclosures in the Chicago area have tripled in the past two years, according to the sheriff’s office. In 2006, 18,916 cases were filed in Cook County; this year’s total is expected to exceed 43,000.

The Illinois Bankers Association last week criticized Dart’s decision to suspend evictions, saying Dart “was elected to uphold the law and to fulfill the legal duties of his office, which include serving eviction notices.”

Appraisers Blame Countrywide for Lost Income

Blacklisted appraisers claim

A group of appraisers has filed a class-action lawsuit against Countrywide Financial Corp. claiming the mortgage giant was responsible for damaging the business of thousands of appraisers.

Capitol West Appraisers filed the lawsuit today in U.S. District Court for the Western District of Washington against the Calabasas, Ca. based company, according to an announcement from the plaintiffs’ law firm, Hagens Berman Sobol Shapiro.

The plaintiffs claim that appraisers who don’t come in at values expected by Countrywide are blacklisted. The field review list reportedly included 2,000 blacklisted appraisers as of Aug. 28.

“Capitol West Appraisers refused to succumb to Countrywide’s alleged pressure to compromise its integrity and independence and refused to commit fraud and violate federal and state laws,” the press release stated. “As a result, the company made the field review list.”

The Boise, Idaho, appraisal firm claims that since it has landed on Countrywide’s appraiser blacklist, its revenues have declined by $8,000 monthly.

Countrywide’s actions have also allegedly caused real estate prices to be distorted.

Thousands of appraisers have suffered damages as a result of being blacklisted, the statement said. Lawyers for the plaintiff hope to include all of the blacklisted appraisers as part of the class.

However, the announcement does not acknowledge that even a single appraiser may have been blacklisted because of appraisal deficiencies. And no mention was made that severely declining originations may have impacted the appraisal business.

The appraisal industry has largely blamed originators — and not appraisers — for fraudulent appraisals with inflated fair market values. Appraisers claim they inflated values because they feared they would lose business and income if they didn’t.

Bank of America Corp. spokeswoman Eloise Hale told MortgageDaily.com that the company had not yet been served and could not comment.

Capitol West Appraisals LLC, on behalf of itself and all other similarly situated, Plaintiff, v. Countrywide Financial Corp., Countrywide Bank N.A., Countrywide Home Loans Inc., Landsafe Inc. and Landsafe Appraisal Services Inc., Defendants.

Case No. C08-1520 RAJ, Oct. 16, 2008 (U.S. District Court, Western District of Washington)

FREE CREDIT TIPS

Free Tips on How To Raise Your Credit Score

Tip #1: Understand where credit scores come from

 If you are thing about trying to improve your credit score, then what you really need to do is to make sure that you understand what your credit score is and how it works. Without knowing this information, you will not be able to effectively improve your credit scores because you won’t be able to understand how the things you do in daily life actually affect your score.

 If you do not understand how your credit score works, you will also be at the mercy of other company’s that you try to do business with or earn some type of credit. Then you will be subjected to their terms and their price, which leads to indefinite higher rates and prices then you know you really should have to be paying.

In general, your credit score is a number that lets lenders, banks and other institutions that involve credit to know how much of a credit risk you really are at that moment in time. The credit score is a number, usually between 300 and 850, that lets these agencies know how well you are paying off your debts and how much of a credit risk you are.

Now the higher your credit score, the better credit risk grade you make and the more likely you will be given credit you want, even at great rates. Scores in the low 600s and below will all to often give you trouble in finding credit, while scores of 720 and above will generally give you the best interest rates out there. However, credit scores are a lot like GPAs or SAT scores from High Schools and Colleges, while they give others a quick snapshot of how you are doing, they are interpreted by people in different ways. Some lenders put more emphasis on credit scores than others.

Now, some of these agencies will work with you if you have credit scores in the 600s, while others offer their best rates only to those people with very high scores. Some agencies will look at your entire credit report while others will accept or reject your loan application based solely on your credit score. It all depends on their prices, products they are selling and the agencies guidelines at that moment that their reps have to follow.

 The credit score is based on your credit report, which contains a history of your past debts and repayments. Credit bureaus use computers and mathematical calculations to derive a credit score from the information contained in your credit report.

 Each credit bureau uses different methods to do this, which is why you will have different scores with different companies, but most credit bureaus use the FICO system. FICO is an acronym for the credit score calculating software offered by Fair Isaac Corporation Company. This is by far the most used software since the Fair Isaac Corporation developed the credit score model used by many people in the financial industry and is still considered one of the leaders in the field.

 In fact, credit scores are more often called FICO scores or FICO ratings, although it is important to understand that your score may be tabulated using different software.

 Another thing you might want to understand about the software and mathematics that goes into your credit score is that the math used by the software is based on research and comparative mathematics. This is an important and simple concept that can help you understand how to boost your credit score. In simple terms, what this means is that your credit score is in a way calculated on the same principles as your insurance premiums.

 Your insurance company likely asks you questions about your health, your lifestyle choices (eg: such as whether you are a smoker) because these bits of information can tell the insurance company how much of a risk you are and how likely you are to make large claims later on. This is widely and solely based on research and data that is compiled by these sources.

 Studies have shown, for example, that smokers tend to be more prone to serious illnesses and so require more medical attention. If you are a smoker, you may face higher insurance premiums because of this.

Similarly, credit bureaus and these agencies often look at these types of general patterns. Since people with too many debts tend not to have great rates of repayment, your credit score may suffer if you have too many debts. Let me give you some examples that can help you understand this in a couple other ways.

Understanding this can help you in two ways:

 1) It will let you see that your credit score is not a personal reflection of how “good” or “bad” you are with money. Rather, it is a reflection of how well lenders and companies think you will repay your bills, based on information gathered from studying other people.

 2) It will let you see that if you want to improve your credit score, you need to work on becoming the sort of debtor that studies have shown tends to repay their bills. You do not have to work hard to reinvent yourself financially and you do not have to start making much more money. You just need to be a reliable to the lenders and other companies giving you this credit.. This realization alone should help make credit repair far less stressful for you and your family today.

Credit reports are put together by credit bureaus, which use information from client companies. It works like this, credit bureaus have clients, such as credit card companies and utility companies and many others, who all provide them with information for them to gather, compile and then score.

Once a file is begun on you, then the information about you is then stored on the record. If you are late paying a bill, the clients call the credit bureaus and report this. Any unpaid bills, overdue bills or other problems with credit count as “dings” on your credit report and affect your score and in some cases dramatically.

Information such as what type of debt you have, how much debt you have, how regularly you pay your bills on time, and your credit accounts are all information that is used to calculate your credit score.

Your age, sex, and income do not count towards your credit score. The actual formula used by credit bureaus to calculate credit scores is a well-kept secret, but it is known that recent account activity, debts, length of credit, unpaid accounts, and types of credit are among the things that count the most in tabulating credit scores from a credit report.

Winners and Losers

HELOC

By:  Chris Kissell

When the Federal Reserve meets, we all have questions: What does it mean to me? Will my HELOC rate go up or down? Bankrate has looked at five categories: mortgages, home equity loans, auto loans, credit cards and certificates of deposit in order to determine if the Fed’s moves made you a winner or a loser. Here’s a look at home equity loans and lines of credit:

Winner: Borrowers with existing home equity lines of credit

After leaving the federal funds rate unchanged for months, the Federal Reserve made an abrupt about-face with an emergency half-point quarter-point rate cut.

The surprise rate cut was made in coordination with other central banks across the world, including the Bank of England, the European Central Bank and banks in Canada, Sweden and Switzerland.

Rates on home equity lines of credit typically are tied to the prime rate, which moves in tandem with the federal funds rate.

So, the latest Fed rate cut means homeowners with home equity lines of credit will enjoy even lower borrowing costs — as long as their lenders haven’t frozen access to equity lines.

That makes HELOC borrowers winners — even if (like many Americans) they haven’t felt like financial winners recently.

 Loser: Home equity loan and HELOC shoppers

As credit conditions tighten and home values continue to fall, few lenders are in the mood to issue new HELOCs. If you are shopping for a new HELOC, you will probably have a tough time finding a lender willing to help you out.

People shopping for home equity loans are likely to run into the same roadblocks as those seeking HELOCs. To make matters worse, loan rates have been climbing for months and are now more than 35 basis points higher than their 2008 lows.

Take action

Home equity products are often a great way to borrow, because the interest is tax-deductible.

The Federal Reserve’s surprise decision to cut the federal funds rate means borrowing costs on home equity lines of credit will sink even lower.

Federal Reserve actions do not directly affect home equity loan rates, which have been climbing in recent months.

Opening a HELOC or taking out a home equity loan may be your best bet for borrowing if you can find an institution willing to lend to you.