Two years into one of the most alarming recessions in the history of the United States, the Senate today approved the Wall Street financial reform bill, according to the Los Angeles Times.

It’s a “bold” and “controversial” piece of legislation that aims to “prevent financial firms from gouging consumers on mortgages and other financial products.” Risky lending, overstretched borrowers and complex sales of bundled home loans are among the many factors that led to an eventual housing/economic crisis.

From the report:

“The legislation also shuts down the federal Office of Thrift Supervision, which oversees savings and loans. That agency failed to prevent the risky mortgage lending that led to some of the biggest collapses of the crisis, including IndyMac Bank of Pasadena and Washington Mutual Bank, the largest thrift failure in U.S. history. Its duties merge into the Office of the Comptroller of the Currency, which oversees national banks.”

Of course, the bill, which narrowly made it through Congress, does have its detractors. Senate Minority Leader Mitch McConnell (R-Ky.) is one of them:

“I think it’s going to make credit harder for the American people to get, clearly harder for businesses to get…. It’s just this kind of uncertainty that will deter lending and freeze up credit … [the legislation] will create a vast new unaccountable bureaucracy that will impose onerous new regulations on struggling businesses.”

President Barack Obama is expected to sign the bill into law next week “in an elaborate ceremony touting it as evidence that Democrats are standing up for Main Street against the powerful financial industry and its Republican allies.”

Too little too late or just what the doctor ordered considering the current circumstances?

Finding the best mortgage rate is just as important (if not more) as settling in the perfect house.

That’s because the loan amount and correlating interest rate will determine the monthly payments that you will be obligated to make over the next 15, 30 or even 40 years.

Therefore, it’s always wise to get preapproved for a mortgage before you start your house hunt. This way you know your financial limits and don’t stretch beyond them when touring properties available for sale.

In fact, most real estate agents strongly recommend that you are preapproved before they start providing you with potential opportunities because it helps them narrow their searches.

One nice thing about mortgage shopping right now is the super low rates. However, we can all but guarantee that these rock-bottom rates won’t last much longer.

Strike while the iron is hot!

The March 2010 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available, which details everything you need to know about “Shopping for a mortgage.”

It is designed to get you familiar with your mortgage options so that you’re on the ball when you do find that once-in-a-lifetime property. You’ll also get handy tips to make your credit squeaky clean before you apply.

So check out “Shopping for a mortgage” today so you’re in a position to get the best terms possible.

To read this month’s free educational newsletter from Foreclosure.com CLICK HERE.

“Making Home Affordable” was introduced earlier this year to reduce the alarming amount of foreclosures in the United States.

The $75 billion program provides mortgage lenders with financial incentives to reduce the amount that distressed homeowners owe on their principal home balances, which in turn reduces their monthly payments. It’s a plan that is designed to short circuit the foreclosure process before it begins.

Today, the Obama administration announced the program’s first milestone — banks have so far signed up more than 500,000 borrowers who need to re-work their mortgages. The good news comes three weeks earlier than expected because the deadline to hit a half-million was set for Nov. 1, 2009, according to the Washington Post.

Here’s a snip Shaun Donovan, secretary of the Department of Housing and Urban Development, on the progress:

“We’re very pleased to have reached this goal of half a million borrowers almost a full month ahead of target, but we obviously have a lot more to do.”

Donovan is making reference to the program’s ultimate goal of helping 4 million borrowers by the end of 2012. It’s a lofty and certainly noble goal.

However, the big concern is whether or not the loans that are modified will be sustainable, meaning the homeowners do not find themselves in distressed situations again down the road.

Only time will tell.

To learn more about Making Home Affordable and determine whether or not you can refinance your home mortgage click here. The official “Making Home Affordable” Web site can be found right here.

Three years ago, just as the housing market was beginning its rapid descent, we purchased a perfect three-bedroom home in South Florida for $325,000.

It was in a great neighborhood. Excellent school district. We were set.

At the time it was priced right to sell ($379,000) — other nearby homes were hovering around the low $400′s. So we were thrilled when our “miracle offer” was accepted with no counters or questions asked. We celebrated the “steal of the century.”

Unfortunately, our joy didn’t last long.

Each year we helplessly watched as our home value continued to sink like a rock. We’re still not even sure if it has hit bottom — we’re too scared to look.  Last time we checked our home was roughly worth about $250,000, which is about a $75,000 hit.

Many homeowners today are in similar if not worse positions. We understand that. Still, that’s a lot of money.

Read the rest of this entry »

“Making Home Affordable,” a $75 billion federal government-backed initiative to keep up to 7 to 9 million Americans in their homes by preventing avoidable foreclosures, may have an uphill battle despite its well-placed intentions.

Associated Press today passed along sobering news from a Office of the Comptroller of the Currency and the Office of Thrift Supervision report, which reveals more than 50 percent of distressed homeowners who had their home loans modified in the first half of 2008 “missed at least two months of payments a year later.”

Job loss is the key culprit: Unemployed homeowners simply can’t afford their mortgages — even if they are cheaper — because the cash flow is either not what it once was or has ceased altogether.

It’s important to note that similar “redefault” statistics for “Making Home Affordable”  are not yet available. And they probably won’t be for several months because the plan was recently introduced earlier this year.

The good news is that the housing recovery program is still in its early stages — only 12 percent of eligible borrowers nationwide (360,000) have taken advantage of the opportunity thus far. More folks will hopefully follow suit sooner rather than later.

In addition, jobless rates were down in most metro areas in August, according to recently-released data from the Labor Department. It’s a promising sign, but there is certainly a very long road ahead.

To learn more about Making Home Affordable and determine whether or not you can refinance your home mortgage click here. The official “Making Home Affordable” Web site can be found right here.