When it comes to buying your first home, one of the most important thing is qualifying for the mortgage for your real estate property. Banks focus on what is called your “debt-to-income” ratio. Debt to Income ratio is the percentage of your gross monthly income, before taxes, that you spend on debt. This includes but not limited to your, monthly housing costs, including principal, interest tax, insurance, and homeowner’s association fees, if applicable. It will usually also include your monthly consumer debt, credit card bills, student loans, installment debts and etc. So the less debt that you have, according to Jeff Lowe, Chicago Real Estate agent, the better chance you might qualify for that loan from the bank. Jeff Lowe says that is not the only thing but it helps to have a low debt to income ratio when you want to buy that house.
Bank of America is delaying foreclosures in 23 states as it examines whether it rushed the foreclosure process for thousands of homeowners without reading the documents. The move adds the nation’s largest bank to a growing list of mortgage companies whose employees signed documents in foreclosure cases without verifying the information in them.
Bank of America isn’t able to estimate how many homeowners’ cases will be affected, Dan Frahm, a spokesman for the Charlotte, N.C.-based bank, said Friday. He said the bank plans to resubmit corrected documents within several weeks.
The document problems could cause thousands of homeowners to contest foreclosures that are in the works or have been completed. If the problems turn up at other lenders, a foreclosure crisis that’s already likely to drag on for several more years could persist even longer. Analysts caution that most homeowners facing foreclosure are still likely to lose their homes.
This is becoming a problem that many Attorney General will have to look into and put pressure on many banks to comply with foreclosure laws.
According to the AP, President Barack Obama is going after Senate Republicans who have stymied his proposal to create a $30 billion fund to help unfreeze lending for credit-starved small businesses.
Obama made clear that it’s not only a policy disagreement, but a reason for voters to steer away from Republicans in November’s pivotal Congressional elections, which will determine whether Democrats keep their majorities in the House and Senate.
“When America is just starting to move forward again, we can’t afford the do-nothing policies and partisan maneuvering that will only take us backward,” he said.
The Republicans naturally seen it differently.