As the mortgage market worsens, I’m getting more questions from readers concerned about their home loans and bank accounts. I’ll answer a few today.

Q: Tim B. asks, “What happens if the holder of your mortgage is one of these cash-strapped companies or even files for bankruptcy? Does someone else come in and have the right to renegotiate the terms with the borrower, or what else might happen?”

A: If the company that owns or services your mortgage goes under, you might have to send your payments to a new address, but the terms of your loan won’t change.

The protracted waiting game between home buyers and sellers continued in July, as Bay Area real estate sales slowed to a 12-year low while prices edged up, according to a report released on Wednesday.

A total of 4,990 existing single-family homes changed hands in the nine-county Bay Area in July, according to DataQuick Information Systems of La Jolla (San Diego County). That was down 13 percent from 5,721 home sales in July 2006.

The median price was $738,500, up 7 percent from $688,955 a year ago.

D-I-Y Auto A/C

When the A/C in our car blew warm air in 90-degree weather, the shop
wanted $80 to recharge it. OUCH! We bought a $20 can of recharge from an
auto parts store and did it on our own. Following directions will save
you serious cash.
Lisa

Bathing Baby

Instead of buying one of the expensive bathtub cushions for bathing
your baby, buy a patio chair pad. These are much cheaper. Plus, they are
water resistant, so splashing is not an issue.
Rachel F.

Not Leftovers Any More

The rate of housing starts fell to the lowest level in a decade in July, falling an estimated 20.9 percent below the July 2006 rate, according U.S. Census Bureau and Department of Housing and Urban Development announced today.

The seasonally adjusted annual rate of building permits dropped an estimated 22.6 percent year-over-year in July and housing completions were down about 22.2 percent, the agencies also reported. This rate is a projection of a monthly total over a 12-month period, adjusted to account for seasonal fluctuations in construction activity.

Mortgage repurchaser Fannie Mae has purchased or guaranteed $310 billion in Alt-A loans, or 12 percent of the company’s single-family mortgage book of business, the company said in releasing its 2006 results.

Alt-A loans are those with reduced documentation requirements or other features that make them riskier than prime loans, but which have performed better than subprime loans.

Many lenders are experiencing problems financing Alt-A because investors who buy mortgage-backed securities have cut back on such investments because of fears about the housing and mortgage lending markets.