My Way Lending

GMAC, the financing division of GMC, posted a $2.48 billion dollar loss for the quarter driven by losses tied to its ResCap residential mortgage group and auto lease write downs.  ResCap which has been posting massive losses since the credit crunch began, lost $1.86 billion tied to more mortgage misery. Private equity firm Cerberus Capital owns 51% of ResCap.

From Reuters:

Finance company GMAC posted a $2.48 billion second-quarter loss on Thursday, hurt by a write-down of vehicle leases and mounting losses at its mortgage lending unit.

The loss compared with a profit of $293 million a year earlier. Results included a $1.86 billion loss at Residential Capital LLC, the mortgage unit’s seventh straight quarterly loss, and a $717 million loss in its auto finance business.

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Until recently, seniors 62 years of age and older have not had the best choices when it came to getting cash from their homes. Traditional home loans only offered the option of either selling one’s house or borrowing against its equity.

With reverse mortgages coming on the scene, seniors now have some additional cash-flow alternatives. This type of loan allows mature borrowers to convert their home equity into tax-free income without leaving their current home or making mortgage payments - and they do not need an existing income to qualify.

How a reverse mortgage works

Reverse mortgages are probably best understood when compared side-by-side with traditional home mortgages, otherwise known as “forward” mortgages. The accompanying table shows the differences between the two.

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Post from: Reverse Mortgage Loan Blog

Reverse mortgages: Financing the golden years

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Steve Brandt at the Star Tribune with an interesting find:

Foreclosure data for the first half of 2008 show that the number of sheriff's sales jumped 59 percent in suburban Hennepin, compared with the same period last year.

But the number of sales is up only 20 percent so far this year in Minneapolis, and there are indications they are leveling off on the North Side, which has been the epicenter of the state's foreclosure crisis.

Pure speculation on our part, but it seems that many of the foreclosures in Minneapolis, and especially North Minneapolis were of the more toxic variety, and simply went bad more quickly.

There was fraud in the burbs, to be sure, but the declining real estate market will take its toll, resulting in more "natural" foreclosures (job loss, divorce, speculation) in addition to those of the shady and toxic strain. It may simply take longer for the foreclosure numbers to build in these areas.