How worried are you about your mortgage?

Excerpts from the blog

With mortgage lenders imploding, banks struggling and the housing market in a downright funk because of an oversupply of for-sale homes and tighter lending standards, mortgages are supposed to be harder to get.

I refinanced a second mortgage recently to pay for more home improvements. Before starting the process, I dreaded it. I'd heard story after story about banks reducing home-equity credit lines, requiring higher down payments and passing on prospective borrowers with less-than-stellar credit.

I figured I'd have to jump through all kinds of hoops to refinance my second, and I was worried that I wouldn't get approved.

I applied for the loan by phone. Less than half an hour later, the loan officer called and said I was approved.

The bad news: I couldn't get the amount I wanted because the credit union decided that my house was worth $25,000 less than I'd expected.

Have you experienced problems getting a new mortgage or refinancing one? What was the process like? How long did it take? Did you have to put more money down, or did you get less than you'd expected? And what were your circumstances (credit history, home value, loan-to-value ratio, etc.)?

How much worse will it get?

Fannie Mae, Freddie Mac and IndyMac Bank dominated business news last weekend, starting July 11, when federal regulators seized the failing California thrift that based its business on funding no- or low-doc loans to borrowers with poor credit.

Last Sunday, the government threw itself behind Freddie and Fannie, allowing the companies to borrow from the Fed at 2.25 percent. The Treasury Department has asked Congress to allow it to extend its lines of credit to the companies and to invest in them if the need arises.

Fannie Mae and Freddie Mac either hold or back $5.3 trillion of mortgage debt, about half the mortgages in the country, so if either failed, it would send the mortgage market — and the economy — into a tailspin. Obviously, neither is in such great shape now, but what if Freddie or Fannie failed?

Well, I keep thinking of the scene in "It's a Wonderful Life" where all the customers are lined up to get their money before the bank fails.

Are the government's steps enough to thwart disaster? If not, what else would it take?

How worried are you about the mortgage industry? Your mortgage?

Implode-O-Meter tracks troubled lenders, builders

An article in the business section of the July 15 New York Times profiled the Mortgage Lender Implode-O-Meter and its creator, Aaron Krowne, 28, a computer scientist, mathematician and former researcher at Emory University in Atlanta who started the site in 2007.

It's given rise to siblings — about homebuilders, banks and hedge funds — and a parent company, Implode-Explode Heavy Industries.

The Home Builder Implode-O-Meter, started by Krowne and Justin Owings early this year, lists the implosion of 35 major builders and 27 small ones since late 2006. It has 15 builders on its watch list, including Centex and D.R. Horton, which both build here.

Armchair agents, try this game

I've said that I have a passion for real estate. I enjoy reading about it, checking out homes, watching the market ups and downs. ZipRealty has launched a real-estate pricing game, Price Me Now. In the interest of research, I had to play.

The game tests how well you know the market in a particular area. You can play one area or several, estimating the selling price of five homes. You're ranked with other players based on your Property IQ. Mine is 111 after playing 15 houses (111 out of 200 — I'm doing well, the company tells me). I played Covington and Maple Valley, which I know well. Once sales are final and prices are public record, we'll know whether I pay attention or just think I do.

Give it a whirl. What's your IQ?

This material has been edited for print publication.

Excerpts from Cindy Zetts' blog appear Sundays in Real Estate. Reach her at 206-464-2027 or czetts@seattletimes.com.