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Bambi
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Posted: Tue Oct 27th, 2009 12:25 am |
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Bambi
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Posted: Mon Oct 26th, 2009 11:34 pm |
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Home Sales Scale 2 Year High in September [/url]
By Lucia Mutikani Lucia Mutikani – Fri Oct 23, 12:55 pm ET
WASHINGTON (Reuters) – A tax incentive for first-time buyers helped propel sales of previously owned U.S. homes to a two-year high last month, according to data on Friday that showed the economy's recovery was becoming entrenched.
The National Association of Realtors said sales of existing homes jumped 9.4 percent in September to an annual rate of 5.57 million units, the highest level since July 2007. Financial markets had expected sales to rise to a 5.35 million unit pace after a surprise decline in August.
Sales were partly driven by first-time buyers rushing to take advantage of the government's popular $8,000 tax credit, which is due to expire at the end of November. Sales were up 9.2 percent compared to September of last year.
"The rapid gain in home sales over the past few months likely owes, in part, to the home buyer tax credit. That said, the trend in home sales is still higher amid greater affordability and an improving economic outlook," said Michelle Meyer, an economist at Barclays Capital in New York.
Despite the bullish report, U.S. stock prices fell as investors fretted over disappointing results from chip maker Broadcom Corp and silicon producer MEMC Electronic Materials Inc, which bucked a recent trend of solid earnings reports.
The housing sector's collapse and subsequent global credit crisis helped to push the U.S. economy into recession at the end of 2007. The downturn was the worst in 70 years.
The housing market is now crawling out of a three-year slump and analysts believe homebuilding probably contributed to economic growth in the third quarter, which would be its first positive contribution since the end of 2005.
ECONOMY GROWING AGAIN
Signs of recovery in the housing market, coupled with other fairly upbeat data, strongly suggest the economy started growing again last quarter for the first time since the second quarter of 2008. The government will release third-quarter gross domestic product estimates next week.
Sales for both new and previously owned homes have been boosted by a combination of the tax credit, depressed prices and low mortgage rates.
There are worries the expiration of the tax credit could hamper the recovery, however, and many lawmakers want to extend the program, with some pushing to expand it to all buyers.
The tax credit has so far cost the government about $10 billion and the Obama administration has yet to decide whether it will back an extension, weighing it against the impact it will have on an already bloated budget deficit.
"We are hopeful the tax credit will be extended and possibly expanded to more buyers ... because the rising sales momentum needs to continue for a few additional quarters until we reach a point of self-sustaining recovery," said Lawrence Yun, chief economist at the Realtors' trade group.
Distressed properties made up 29 percent of sales last month, with first-time buyers accounting for 31 percent, but analysts said other forces also helped.
"Our view is that near-record affordability and falling inventory is pulling people into the market," said Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, New York.
The inventory of existing homes for sale in September dropped 7.5 percent to 3.63 million units, the NAR said.
September's sales pace pushed the supply of previously owned homes on the market down to 7.8 months' worth, the lowest in 2-1/2 months, from 9.3 months in August.
On the prices front, the national median home price fell 8.5 percent to $174,900 in September from a year earlier, the smallest percentage decline in 13 months.
Also............
By Corbett B. Daly Corbett B. Daly – 20 mins ago
WASHINGTON (Reuters) – The U.S. Senate could vote on Tuesday to extend a popular tax break for home buyers that has helped lift the housing market out of its worst slump since the Great Depression.
Last edited on Mon Oct 26th, 2009 11:35 pm by Bambi
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Bambi
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Posted: Thu Oct 15th, 2009 10:14 pm |
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This is what happens when you have a representative who "thinks" he understands the mechanics of real estate lending.
History Lesson from American Banker...............
David Stevens, the commissioner of the Federal Housing Administration, says the critics who are pushing to increase his agency's down-payment requirement have misdiagnosed the mortgage crisis.
"It isn't the [lack of a] down payment on its own that causes a default," Stevens said Monday at the Mortgage Bankers Association's annual convention in San Diego. "It's the layering of risk that we saw in the industry that causes default. It's 'no down payment on an option ARM on an 80-20 loan' that ended up having those kinds of performance characteristics."
Rep. Scott Garrett, R-N.J.,introduced a bill this month that would raise the minimum borrowers must put down to get an FHA-backed mortgage to 5% from 3.5%. Stevens said such an increase would shut out borrowers, particularly in high-cost markets like California.
"Quite frankly, the intangible impact of these minor changes being proposed would stagnate or forestall a recovery," he said.
FHA mortgages are insured to protect lenders in case of a default on the FHA loan. An FHA mortgage is advantageous to the borrower because of the reduced cash investment needed to close on a home. The FHA mortgage is possible in part because the FHA is funded solely from income it creates itself. The FHA is not funded by tax dollars, but from the revenue generated by FHA mortgage insurance. This cost is borne by the homebuyer, but the insurance cost ends approximately five years later, or when the FHA mortgage balance is seventy-eight percent of the property value, whichever occurs last.
The 203(b) fixed rate loan is the most popular FHA home loan, especially among first time home buyers. If you have never purchased a home before, you may wish to consider the 203(b) FHA loan—it keeps your downpayment to a minimum. Your closing costs may also be reduced. The 203(b) FHA loan will finance up to ninety-seven percent of your loan. There are some debt-to-income ratios you’ll be required to adhere to, but the 203(b) does not have a minimum income requirement
MIP (Mortgage Insurance Premium). That's what's paid to minimize the risk. It's paid in front many times, or included in the payment. Why take away a loan that gives an advantage to the qualified borrower by taking away the advantage? Place them in a conventional loan instead. Conventional loans require a min. of 5% down.
Why make it more difficult to purchase real estate during this time? Just make sure you're not working with a predatory lender. Work with "approved" FHA Lenders only.
If this goes thru, the next stop is the VA loan.
The VA loan is a program set up to help active duty and retired military personnel into homes. They will give you 100% financing on a home without having to pay mortgage insurance at a very competitive rate. The VA also limits the types of fees that can be charged protecting against predatory lending. The seller can pay up to 6%, which should cover more than enough of costs so you can get into you new home with no money out of pocket.
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Bambi
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Posted: Thu Oct 15th, 2009 04:37 pm |
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Every 7.5 seconds, an American Family's home is foreclosed upon.
Yet $140 billion in bonus's has been handed out by Wall Street.
Using taxpayer money for their risk taking, then paying it out in excessive bonus's instead of circulating down to Main Street.
Unfettered Capitalism.....paying Lobbyist millions to fight regulation. Constantly working on schemes to change the rules.
If you believe that you have the right to do as you please without government intervention or regulation, like many Conservatives and Libertarians do, then you will get this end result......them; Wall Street and Corporations, controlling the People.
Health Insurance Companies exempt from regulation. Look at that result.
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Bambi
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Posted: Tue Oct 13th, 2009 08:05 pm |
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I've been in Kansas, so I don't have alot to report. I'll pass on some of the news lenders and others have sent me. I do know that many feel we haven't reached bottom yet out here.......but that's because it's a bargain hunters paradise. Sooner or later, we have to get the confidence back so prices will stablelize. Banks just want them off their books, so they'll take just about anything.....that's what's keeping those prices down. If they would halt that type of mentality and start demanding more, we might start climbing. Anyway, here's some news from a local QC guy named Kirk Brewer. Farmers Ins.
MORTGAGE RATES: Friday’s mortgage price action was a sign that markets can move quickly, and not always in expected ways. Why did mortgage interest rates shoot up Friday? I don't buy off on the reason many suggest: "...Federal Reserve Chairman Ben S. Bernanke said the central bank will be ready to raise interest rates when the economic outlook ‘has improved sufficiently’." He is stating the obvious. Is there some kind of surprise there? The fact of the matter is that rates have come down, and stayed down, in spite of the supply last week and in spite of signs that the economy is not as bad as it was 6 months ago. Many mortgage lenders are/were back offering 30-yr rates in the high 4's. And when markets move one way or the other to a large degree, or for an extended period of time, they are likely to rebound the other way – just like a rubber band. Plain and simple.
STOCK MARKET: Today we saw the market continue it’s upward climb from last week’s gains. AT one point in early trading, the Dow Jones Industrial Average was a mere 70 points shy of 10,000 – a critical resistance level according to many analysts. We’re near or at the highs of the year, despite a stagnant housing and employment picture. And more U.S. stocks are trading at 52-week highs than at any time since June 2007. We are again in quarterly earnings season with several large DOW components due to report this week. The markets could see some increased movement based on the earnings results (better or worse than expected) of those companies with early announcements.
ECONOMY: Would you like to hear what 44 national business economists believe the general economy, including housing and employment, is going to do for the rest of 2009 through 2010? Well here is a link to a good article I came across today. It seems to present a cautious, yet realistic perspective regarding where we are at in the cycle today, and what the recover should have in store. http://news.yahoo.com/s/nm/20091012/bs_nm/us_usa_economy_survey_5
And here's something from M. McDermott.....a lender.
Here are a few basic clarifications on some myths that I have heard regarding Mortgage Lending:
1. BUYING A NEW PRIMARY & TURNING OLD HOME INTO INVESTMENT –
a. If buying a new primary, buyer does not need a certain amount of reserves OR equity in their current home to buy
b. The only time equity in current property is an issue is if the buyer is trying to use the new rental income they will receive on their current primary that they are turning into an investment prop. In that case they need to have and document 30% equity to use the new rental income. Otherwise we count all mortgage payments against them.
2. MULTIPLE PROPERTIES FOR INVESTORS –
a. An investor can have more than 4 financed properties. They can have up to 10.
3. INVESTOR CASH OUT –
a. Investors can pull cash out of properties that they purchased with cash (up to 75% loan to value). To use current market value, the property must have been owned for 6 months.
4. FHA 90 DAY FLIP –
a. The 90 day count starts on the prior sales Settlement Date, NOT the Recording date. Please see the attached document if you need to help a seller understand this. The attached doc is directly from the latest and greatest FHA guide book (its published quarterly).
b. Flip rule was waived recently for buyers using NSP programs only (ex. of an NSP is Your Way Home AZ – which we have). The flip rule was not waived for all FHA purchases.
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starleen
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Posted: Fri Sep 25th, 2009 05:42 am |
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Last edited on Thu Oct 15th, 2009 08:46 am by starleen
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Bambi
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Posted: Thu Sep 24th, 2009 04:47 pm |
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More News on Mortgage Assistance. You decide if it's SPIN, from this credible resource. If the consensus is it's SPIN and politically biased, then I'll delete it tonite.
Mortgages Update
Thursday, September 24, 2009
White Papers
Web Seminars
Pipeline
A roundup of credit market news and views
By Marc Hochstein, Kate Berry, raising credit score requirements.
The government-sponsored enterprise told lenders this week that it will require a score of at least 620 for most loan types — including those insured by government agencies such as the Federal Housing Administration and Department of Veterans Affairs.
Currently, the minimum score for most products is 580, and there is no minimum for government loans. The new minimum will take effect for manually underwritten loans on Nov. 1, and for loans underwritten using Desktop Underwriter when Fannie updates the software on Dec. 12.
"Our experience with recently delivered loans with credit scores below 620 is that they reached a level of serious delinquency at a rate approximately nine times higher than other acquisitions during the same period," Brian Faith, a spokesman for Fannie, wrote in an e-mail to American Banker Wednesday.
Loans that are underwritten using nontraditional credit data like rent or utility payments will remain exempt from minimum score requirements, Fannie said. So will Refi Plus, a product offered under the Obama administration's Home Affordable RefinanceCQ Program to borrowers who owe more than their homes are worth on an existing loan owned or guaranteed by Fannie.
Eye on Refis
Refinancing applications jumped last week as the average 30-year fixed rate dipped below 5% for the first time since mid-May, the Mortgage Bankers Association said Wednesday.
The trade group's index of refi requests increased 17% over the previous week. Its index for applications for home-purchase loans climbed 5.6%, driven by demand for government loans, the MBA said.
The index of government purchase loan application volume reached the highest level ever recorded since the survey began in March 1990. Government loans' share of all purchase-loan applications was 45.7% last week, the highest since November 1990, the MBA said.
Mortgage Maxx LLC said Tuesday that its index of refi and purchase applications in eight bellwether states climbed 2.4% last week from the previous week. The Ossining, N.Y., data firm's component index for California applications increased 5.2%.
Mark Fleming, the chief economist at First American CoreLogic, a unit of First American Corp. of Santa Ana, Calif., released a study last week that found refis resulted in $2.3 billion in mortgage payment savings in the first half of the year.
The Federal Reserve Board's lowering of mortgage rates through purchases of mortgage-backed securities, and other federal programs such as Harp, have allowed 2 million consumers to reduce payments by an average of $120 a month, Fleming said.
Those savings will "be used to increase consumption and help to drive growth as the economy rebounds," he said.
Lower payments and fixed-rate terms also should reduce the risk of future foreclosure, he added.
Moody's on Mods
Servicers that are modifying home loans in private-label securitizations under a Treasury Department program are not following one of the guidelines, according to Moody's Investors Service Inc.
Under the Home Affordable Modification Program, when principal is reduced servicers are encouraged to recognize the loss at the time the loan is rewritten. But Cecilia Lam, a Moody's analyst, wrote in a report released last week that servicers dealing directly with borrowers "have punted the issue" of when to recognize these losses to the master servicers of the pools. Fear of being sued by subordinate bondholders, who stand to lose the most from principal writedowns, may be one reason why servicers have been so sheepish, Lam wrote.
That may explain why most of the modifications for the Obama administration's Home Affordable Modification Program are being done on loans owned or guaranteed by Fannie and Freddie Mac. William Fricke, a Moody's vice president and senior credit officer, analyzed the second servicer performance report released this month by the Treasury and found that 65% of trial modifications were started on loans owned or guaranteed by one of the GSEs.
Quotables …
"The single largest impediment to a recovery in the housing market is the large number of loans that are either in delinquent status or in foreclosure that are destined to liquidate. This creates a huge shadow inventory. We estimate this housing overhang at 7 million units, 135% of a full year of existing home sales."
Analysts at Amherst Securities Group LP led by Laurie Goodman, in a note to clients Wednesday.
"There will be death panels enacted by this Congress, but they will be for nonbank financial institutions. … We are talking about dissolutions, not 'resolutions.' We are talking about making it unpleasant for the entities."
Barney Frank, the chairman of the House Financial Services Committee, on the idea of creating a "resolution authority" for systemically important firms, at a hearing Wednesday. (See
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Bambi
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Posted: Thu Sep 24th, 2009 04:24 pm |
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Last edited on Fri Sep 25th, 2009 12:57 am by Bambi
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Bambi
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Posted: Thu Sep 24th, 2009 03:47 pm |
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starleen wrote: Bambi wrote: Joe_the_Plumber wrote: Wecome to the SPIN Zone.
Are you on here to contribute or to attack? If you think spin is happening here, then explain it please. Add your knowledge about real estate to your answer so we can substantiate your claims and thereby acknowledge that you are not trying to hijack this thread.
Making Home Affordable Program hasn't helped enough, some say
http://www.cnn.com/2009/POLITICS/08/31/treasury.mortgages/index.html
"Treasury is on track to help 3 million to 4 million homeowners in three years."
How many of those 3 to 4 million need the help NOW, not in three years??
The SPIN is so obvious to many of us that JTP doesn't need to explain. And who cares whether he is on here to contribute or attack, it is a public forum. Sometimes attacking IS the contribution, and on the other hand, having an alternate opinion expressed with a dry sense of humor is not necessarily attacking! And now we need to certifiy our RE knowledge before we can post this thread?
Nobody has to wait 3 years Starleen. You should read better sources to back up your accusations against me. So far, this is what has transpired since the program begin in March of this year, along with my stats.
On March 4, 2009, the Obama Administration introduced MHA Program to stabilize the housing market and reduce monthly mortgage payments for Americans. The program aimed to help 3-4m homeowners, and so far 15% of eligible homeowners — or 2.7m — received help after six months, according to Federal Housing Administration (FHA) commissioner David Stevens.
“MHA has achieved clear success in a relative short time period and there are some indications that the housing market is stabilizing with home price declines slowing,” he said in prepared testimony delivered to the House subcommittee hearing Wednesday. In August an uneven performance among servicers initially participating in the program. Since then, In July, Treasury secretary Timothy Geithner and the Housing and Urban Development (HUD) secretary Shaun Donovan sent a letter to servicers urging them to do more.
Michael Barr, the Treasury assistant secretary for financial institutions said in written testimony that servicers at the meeting committed to reaching a target of 500,000 trial modifications by Nov. 1, 2009.
When asked at the hearing what the expected rate of enrollment would be in the future, Barr stated that the program is on track to reach nearly 4m borrowers over the next three years.
And by the way......Bush's Program is successful too and is still in operation. If you scroll down, you'll see where I posted his successful program also, called Hope For Homeowners.
People participating in an Internet forum are trying to cultivate social bonds and interest, ideas and solutions from the discussions. Attacking my answer doesn't accomplish that and staying on topic is critical, in a civil way. I have yet to see what the reason for spin is on this real estate topic I was discussing with LTA. Your insert of some news agencies' (CNN) report means little. Show me some stats. real estate stats, not Partyline stats against Obama. That's why if you call it spin, then you need to tell us how the spin works on this real estate topic, using real estate information, without political cause, because that's not what this topic is about. It's about Real Estate and Mortgage Updates.
I started this thread and did so to help people with their real estate needs. You disagree and contend I am soliciting business. Not true. Nor has it ever happened. Not one customer have I gleaned from here, but many friends. To come on here making a statement of spin, without proof of such, is a false attack and an attempt to hijack the thread and change it's content. Similar to the false attack you made on me, accusing me of trolling on here to find customers. What I perceive you and your right wing counterpart doing is trolling to find fault, not discussion, because of my political affiliation, thereby discrediting me, even though it's my field of expertise.
A troll is a user that repeatedly and intentionally breaches in the very least, online ediquette, often posting derogatory or otherwise inflammatory messages or words about topics they know little about, to bait users into responding, often starting an online war. They may also plant images to cause confrontation. Some people on here have accused EJ Elliot of doing this. Where is your outrage about that? Where is the Spin accusation? Or is it just Bambi's post that needs attacking for a political or credibility reason.
Now, describe your reason for my answer being spin.....spin on this real estate topic. If it's not about real estate, then I take it as bait from a poster who has no conpunction to argue the merits of these real estate programs, but only to state it is spin. Spin into what? For what reason? For who's benefit? You state it's obvious. Please show me and the rest of us who are waiting for your answer.....that would be the Plumber and yourself.
And BTW, Attacking is never the solution nor is it allowed on any forums where the Pledge you sign disallows it. Most of us have done it at one time or another, but have hopefully learned by our mistakes.
Last edited on Thu Sep 24th, 2009 07:32 pm by Bambi
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starleen
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Posted: Thu Sep 24th, 2009 09:11 am |
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Bambi wrote: Joe_the_Plumber wrote: Wecome to the SPIN Zone.
Are you on here to contribute or to attack? If you think spin is happening here, then explain it please. Add your knowledge about real estate to your answer so we can substantiate your claims and thereby acknowledge that you are not trying to hijack this thread.
Making Home Affordable Program hasn't helped enough, some say
http://www.cnn.com/2009/POLITICS/08/31/treasury.mortgages/index.html
"Treasury is on track to help 3 million to 4 million homeowners in three years."
How many of those 3 to 4 million need the help NOW, not in three years??
The SPIN is so obvious to many of us that JTP doesn't need to explain. And who cares whether he is on here to contribute or attack, it is a public forum. Sometimes attacking IS the contribution, and on the other hand, having an alternate opinion expressed with a dry sense of humor is not necessarily attacking! And now we need to certifiy our RE knowledge before we can post this thread?
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Lovethisarea
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Posted: Wed Sep 23rd, 2009 09:22 pm |
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Bambi wrote:
Now that was Bush's Program.
Take a look at Obama's Program. This is from the White House. It's called the the Making Home Affordable Program. LTA.....You may want to ask for a 40 year loan.
I have confirmed with Countrywide many, many times that we do not qualify for Obama's program. The last two times I asked Countrywide, I told them I wanted to be absolutely sure I don't qualify and they said I can be sure... they are positive I Do Not qualify. The last time I spoke to them (surprisingly the first time they were nice to me!) they told me that Obama's program would actually make our mortgage go up! 
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Lovethisarea
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Posted: Wed Sep 23rd, 2009 09:16 pm |
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Bambi wrote:
Here is that fact sheet for Hope For Homeowners Program................ Countrywide does not have to participate and has chosen not to participate, probably because of the equity trade and the requirement for them to reduce the principle which angers their investors.
The HOPE for Homeowners program runs until September 20, 2011.
Thanks for the info Bambi. So would I be right to assume that contacting a counselor or FHA approved lender about this HFH program is a waste of time since I have Countrywide?
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Bambi
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Posted: Wed Sep 23rd, 2009 04:38 pm |
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Joe_the_Plumber wrote: Wecome to the SPIN Zone.
Are you on here to contribute or to attack? If you think spin is happening here, then explain it please. Add your knowledge about real estate to your answer so we can substantiate your claims and thereby acknowledge that you are not trying to hijack this thread.
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Joe_the_Plumber
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Posted: Wed Sep 23rd, 2009 04:19 pm |
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| Wecome to the SPIN Zone.
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Bambi
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Posted: Wed Sep 23rd, 2009 04:06 pm |
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Now that was Bush's Program.
Take a look at Obama's Program. This is from the White House. It's called the the Making Home Affordable Program. LTA.....You may want to ask for a 40 year loan.
 Text A+ A- A | En españolNeed urgent help? Contact the Homeowner’s HOPE™ Hotline: (888) 995-HOPE
About Eligibility Loan Look Up Find a Counselor Contact Your Mortgage Servicer Resources Audio and Video
Press Releases
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Home › Resources › Press Releases
Press Releases
August 4, 2009
MAKING HOME AFFORDABLE PROGRAM ON PACE TO OFFER HELP TO MILLIONS OF HOMEOWNERS
Public Release of Data Provides Transparency on Servicer Performance
WASHINGTON – Today, the Obama Administration released its first monthly Servicer Performance Report detailing the progress to date of the Making Home Affordable (MHA) loan modification program. The purpose of the report is to document the number of struggling homeowners already helped under the program, provide information on servicer performance and expand transparency around the initiative.
On February 18, the Obama Administration announced its comprehensive plan to stabilize the U.S. housing market. Two weeks later on March 4, the Administration published detailed program guidelines and authorized servicers to begin modifications immediately. MHA provides $75 billion for sustainable mortgage modifications through the Home Affordable Modification Program (HAMP).
MHA has made rapid progress in a few short months. Servicers covering more than 85 percent of loans in the country are already modifying loans under the program. More than 400,000 modification offers have been extended and more than 230,000 trial modifications have begun. This pace of modifications puts the program on track to offer assistance to up to 3 to 4 million homeowners over the next three years, our target on February 18.
Today’s report discloses performance on a servicer-by-servicer basis in order to increase transparency for participating institutions. The data show that servicer performance has been uneven. The Administration has asked servicers to ramp up implementation to a cumulative 500,000 trial modifications started by November 1, 2009. This would more than double in three months the number of trial modifications started in the first five months of the program.
The Administration is taking additional steps to improve performance. On July 9, Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan wrote the CEOs of participating servicers calling upon them to redouble their efforts to increase staffing, improve borrower response times and streamline the application process. Senior Administration officials discussed the importance of these steps in a face-to-face meeting with servicer executives on July 28. The Administration will develop more exacting metrics to measure the quality of borrower experience, such as average borrower wait time for inbound inquiries, completeness and accuracy of information provided applicants, and response time for completed applications. As an additional protection for borrowers, the Administration has asked the program compliance agent, Freddie Mac, to develop a “second look” process to audit MHA modification applications that have been declined on an ongoing basis.
Making Home Affordable
MHA On Pace to Offer Help to Millions of Homeowners
1. Program On Pace to Help up to 3-4 Million Homeowners Over the Next Three Years
- More Than 230,000 Trial Modifications Started
- More Than 85 Percent of Mortgage Market Covered by Participating Servicers
2. Performance Metrics Aimed at Improving Consistency of Servicer Performance
- Description of Metrics Used to Measure Servicer Performance
- Servicer Performance Metrics Show Uneven Progress in Implementation
- Target of 500,000 Cumulative Trial Modifications Started by November 1, 2009
3. Public Report Increases MHA Program Transparency
1. Program On Pace to Help up to 3-4 Million Homeowners Over the Next Three Years
- More Than 230,000 Trial Modifications Started
No program has previously attempted to modify so many mortgages at such affordable terms for borrowers. The Administration is seeing real results – modifications that provide long-term solutions for borrowers.
- In 2008, 42 percent of modifications by the largest servicers lowered monthly payments. Under the MHA modification program, 100 percent of borrowers starting trial modifications have had their payments reduced.
- More Than 85 Percent of Mortgage Market Covered by Participating Servicers
- Thirty-eight servicers have signed Servicer Participation Agreements (SPAs) to participate in the program. These 38 servicers service many types of loans, including Fannie Mae and Freddie Mac loans, private label loans and loans in portfolio.
- Approximately 2300 servicers that service Fannie Mae and Freddie Mac loans are automatically participating in HAMP.
2. Performance Metrics Aimed at Improving Consistency of Servicer Performance
- Description of Metrics Used to Measure Servicer Performance
The Administration has established a servicer-by-servicer performance metric to enhance overall program performance.
- The report includes the absolute number of trial modifications begun by each servicer.
- The report also includes a simple performance metric which measures each servicer’s performance relative to an estimate of the servicer’s HAMP eligible loans.
- The performance metric used in the report is trial modification starts as a share of estimated HAMP eligible loans.
- Many loans are eligible for HAMP that are not included in the estimated HAMP eligible loans in the public report, including current borrowers in imminent default.
- This measure of estimated HAMP eligible loans was developed solely to provide a common denominator across which to compare performance of servicers.
- Servicer Performance Metrics Show Uneven Progress in Implementation
The metric measuring comparative servicer performance shows uneven ramp-up, and substantial variation in the pace of modifications. To improve performance, the Administration has asked servicers to commit to starting 500,000 trial modifications by November 1, 2009 and to establishing exacting metrics to monitor servicer specific program performance.
3. Public Report Increases HAMP Program Transparency
Today’s report will provide transparency into program results on a servicer specific basis.
- Reports Will Be Issued on a Monthly Basis
The Administration expects to issue reports detailing the progress of modifications under the HAMP program each month. This report will be updated to include additional metrics and results as the program progresses and more data becomes available.
###
Report
Last edited on Wed Sep 23rd, 2009 04:09 pm by Bambi
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Bambi
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Posted: Wed Sep 23rd, 2009 04:03 pm |
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Here is that fact sheet for Hope For Homeowners Program................ Countrywide does not have to participate and has chosen not to participate, probably because of the equity trade and the requirement for them to reduce the principle which angers their investors.
The HOPE for Homeowners program runs until September 20, 2011.
What is the HOPE for Homeowners Program?
This is a new program for borrowers at risk of default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal Housing Administration (FHA).
It may help you refinance your mortgage into a more affordable payment.
H4H is voluntary. Both lender(s) and borrower(s) must agree to participate.
When does H4H Begin?
The program begins October 1, 2008 and ends September 30, 2011.
Who is eligible?
You should contact your lender to determine eligibility, but you may be eligible if, among other factors:
- The home is your primary residence, and you have no ownership interest in any other residential property, such as second homes.
- Your existing mortgage was originated on or before January 1, 2008 and you have made at least six payments.
- You are not able to pay your existing mortgage without help.
- As of March 2008, your total monthly mortgage payments due were more than 31 percent of your gross monthly income.
- You certify that you have not been convicted of fraud in the past 10 years, intentionally defaulted on debts; and did not knowingly or willingly provide material false information to obtain existing mortgage(s).
Who should I contact?
FHA does not accept loan applications. Borrowers seeking help should contact their lender, another FHA-approved lender, or a housing counselor to apply or learn more about their options.
How much can I borrow?
Your new H4H mortgage will be no more than 90% of the new appraised value of your home with the lender essentially writing down your current mortgage to that amount.
What costs do I have to pay?
Will my new interest rate be lower than my current rate?
The interest rate for the new mortgage will be based on current market interest rates and will be provided by the lender.
I currently have a second mortgage. If needed, can I take out a second mortgage under this program?
You cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.
How can I learn more about the program and start the application process?
- Review the Frequently Asked Questions page at http://www.fha.gov to learn more about the program.
- Contact an FHA-approved lender to apply. You can find a list of lenders at http://www.fha.gov
- Contact a Housing Counselor. A list of Housing Counselors can be found at http://www.fha.gov
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U.S. Department of Housing and Urban Development
451 7th Street S.W., Washington, DC 20410
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Find the address of a HUD office near you
Lenders Reluctance to Use “Hope for Homeowners” Program Leads to Changes
A few months ago while testifying before Congress, lenders praised the government's foreclosure prevention program but indicated that they preferred to use their own modification programs. As part of the housing rescue bill passed by Congress in July (not to be confused with the bailout bill passed in October), homeowners in trouble have been able to refinance their mortgages with the backing of the Federal Housing Authority (FHA) starting October 1st.
However, after 8 weeks fewer than 100 applications have been made for the Hope for Homeowners program. A main reason lender's are not enthusiastic is that the program calls for them to reduce loan balances to 90% of a home's current market value. In addition, the lender has to pay an upfront mortgage insurance fee of 3% of the loan balance to the FHA.
A Senior Vice President for JP Morgan Chase Home Lending, testified about the drawbacks of Hope for Homeowners. "Under the Program, [investors in the loans] will take a loss when the principal balance is written down," she testified, adding that they won't have a chance to make up that loss if home prices recover. Sheehan added that Chase can help many borrowers' by reducing their interest rates, thereby making their monthly payments more affordable.
Other lenders such as Bank of America, Wells Fargo and IndyMac (which was taken over by the FDIC in July) agreed and stated that they prefer to use the FHA program as just one of several options. When directly asked whether the program would be considered a last resort, all the members of the panel agreed that it would be.
The bank executives said that their responsibility to maximize profits for the investors would probably limit the number of cases in which the Hope for Homeowners program would be used. All of the lenders also stressed that their efforts with loan modification programs and the increasing number of workouts that they have been doing.
Because of this disappointing response, the US Housing and Urban Development Secretary Preston announced that major changes were being made to help more home borrowers. The major change is increasing the loan to value to 96.5% from the previous 90% for some situations. This means that lenders will not have to write down the balances as much and make them more likely to participate in the program. Other changes include changing the way 2nd mortgage holders are paid off, making the process simpler and again increasing the chances that lenders will assist home owners.
Together, these changes will hopefully help more homeowners avoid foreclosure and offer another solution if a loan modification alone will not work. Despite these relaxed terms, the FHA will still use the same standards to ensure that home owners will have enough income and the ability to repay the loans. Although its mission is to help provide affordable financing, the FHA needs to make sure that it does so in a responsible way that is sustainable.
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WHAT ARE THE BENEFITS OF HOPE?
The benefits of participating in HOPE for Homeowners include;
Keeping your home
- Getting a 30-year fixed-rate mortgage (extendable to 40 years in some cases)
- Lower monthly mortgage payments which do not change
The 30-year loan is extendable in some situations. Extending the terms to 40 years is helpful in cases where the homeowner has a large amount of debt; the 40-year term reduces mortgage payments further. There are requirements and restrictions on these extended loans. Check with your lender to see if you qualify for the 40-year loan terms under the HOPE program.
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Lovethisarea
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Posted: Wed Sep 23rd, 2009 02:33 pm |
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Bambi wrote:
I think you are talking about this Program, but not sure.
‘FHA short refinance’. If HSBC agrees to permit an FHA short refinance through the Hope For Homeowners program then the HSBC loan will be written down to 90% of the appraised value. You will have an instant 10% equity. If you sell the property within the first year for the current appraised value then you will forfeit any right to the 10% equity to HUD. This 10% equity is referred to as the ‘initial equity’ and the homeowner’s percentage of the initial equity grows according to HUD year after year assuming sale of the property as follows:
- During Year 1, 100% of equity is paid to FHA
- During Year 2, 90% of equity is paid to FHA
- During Year 3, 80% of equity is paid to FHA
- During Year 4, 70% of equity is paid to FHA
- During Year 5, 60% of equity is paid to FHA
- After Year 5, 50% of equity is paid to FHA
The above is HUD’s scale for ‘initial equity’ which is the difference between the FHA appraised value today and the new FHA loan amount. Since the new FHA loan amount is at 90% LTV through the FHA Short Refinance program, that ‘initial equity’ is 10%.
Here’s an interesting piece of information. If HSBC will participate in the FHA short refinance program through H4H and accommodate one by writing the loan balance down to 90% of the FHA appraised value today, then your new mortgage amount will be based on that FHA appraised value (90% of FHA appraised value). There is another facet to the H4H short refinance program with regards to one's future sale of the property. If you were to refinance today at 90% of the appraised value and you were to sell next month for a price higher than the FHA appraised value today, then you would keep 50% of the net difference between the future sales price and the current FHA appraised value. FHA keeps the other 50%. Not bad.
All in all, I like the H4H program; but bear in mind that it is a voluntary program and lenders aren’t usually willing to do anything voluntarily that reduces their profits.
In fact, take a look at this. Perhaps the HOPE for Homeowners Program should be called the HOPELESS for Homeowners Program because no lenders appear willing to participate in the program. None of the Big Four lenders will fund the HOPE for Homeowners Program through FHA: not Citigroup, nor Wells Fargo nor Countrywide nor Bank of America. Now it may have changed by now, but not sure. This program has been around for at least a year. Problem is the lenders.
Thanks for the question and hope this helps pipe.
My lender (Countrywide) referred me to this website ( http://www.hud.gov/hopeforhomeowners/consumerfactsheet.cfm ) and told me that the government is telling them to give this website to those that don't qualify for the other programs. They said they think we may qualify for this and said this is a 'new' program that doesn't start til next month. I go to the website and it says the program started Oct 2008... NOT new! Then I look for contact info and read this.... " Who should I Contact? FHA does not accept loan applications. Borrowers seeking help should contact their lender, another FHA-approved lender, or a housing counselor to apply or learn more about their options.". It seems like a dead end, I did contact my lender and they sent me to the website AND told me this program doesn't start til next month! Not really sure what I should do with this info besides stare at it! My mortgage co seems to have removed themselves from the situation and the website says to talk to my mortgage Company! As far as "another FHA-approved lender, or a housing counselor" thats not very clear on exactly who one should call.
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Bambi
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Posted: Mon Sep 21st, 2009 08:04 pm |
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American Consumers need Protection against Consumer Fraud. It's time to catch these theives that are collecting money for making loan modifications.....only they fail to modify the loan. They run with the money. Take a look at what is going to catch them. And learn about the new FHA loan requirments.
http://www.thinkbigworksmall.com/mypage/player/tbws/16468/1101628
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Bambi
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Posted: Mon Sep 21st, 2009 07:51 pm |
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Last edited on Tue Sep 22nd, 2009 10:26 pm by Bambi
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Bambi
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Posted: Fri Sep 18th, 2009 06:48 pm |
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The rumors of extending the First Time Home Buyer credit are now officially swirling one day after Bernanke declared victory over the recession. To date 1.4 million people have used the first time homebuyer tax credit. This morning, the White House stated that they are evaluating this program and measuring its impact on both the Housing Industry and the overall economy. New legislation has been proposed to both sides of Congress that would stretch the program into next year, increase the credit to $15,000. and remove the income restrictions entirely.
This of course is just talk at this point and can’t yet be relied on as fact.
More and more, we are finding the banks just don't want to modify these loans. Nor do they want to go thru foreclosure. They want these homes OFF THEIR BOOKS ASAP, so they are shortselling them for whatever they can get. Until this practice stops, we will continue to lag.
Last edited on Fri Sep 18th, 2009 06:49 pm by Bambi
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Bambi
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Posted: Thu Sep 10th, 2009 06:21 pm |
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Lovethisarea wrote: I think we are going to stick with our home. (Short Sale, Foreclosure... possible Bankruptcy) It just feels Too Wrong, we can't bring ourselves to do it. So... looks like we will continue to be the last ones standing... out of those we know anyway. 
Bambi wrote:
Lovethisarea wrote: Bambi I have a question for you. I am being told by a real estate agent that the only way my mortgage lender (Countrywide) will even consider a short sale is if we are 60-90 days late on our mortgage. Is this correct? This is a very tough decision as it is and I want to make sure that if we go through with this we are doing it right. I thought if you were 60-90 days late on a mortgage it would be the same as foreclosure... I am told by the real estate agent that this is not true. They say that a short sale will only be on our credit for 2-3 yrs and a foreclosure would be 7-10. Thank You for any info, it is much appreciated.
First of all, I would speak direct to my lender if I were you. It depends on their policy. Countrywide is very busy and I understand they are taking about 6 months to negotiate a short sale. Foreclosures will give you more time in the home while the lender holds it. 90 days is the minimum late time for foreclosures. Short sales have usually been 60 to 90 days late before actions taken. Concerning the credit score? Contact the credit bureau. You might want to google some of these questions too. But the best thing to do is set up a good working relationship with all parties. Good luck LTA.
I'm glad you came to a final decision, hopefully based on your research and your "moral compass."
I subscribe to the American Banker. I'm not sure I can transfer their information on here, but I'm going to and if you don't see me anymore, you'll know I broke the copyrite laws and have joined QCV in copyrite breakers jail. Although, as a teacher, I can do that as long as it is for the edification of my students. That would be you in this case LTV. lol. Hopefully, we can all learn something from these insiders and their inside information.
Mortgages Update
Thursday, September 10, 2009
Pipeline
A roundup of credit market news and views
By Maria Aspan, Kate Berry and Harry Terris
Updated every Wednesday evening, circa 11 p.m. ET. Links may require registration/subscription.
Literacy Street
HSBC Holdings PLC played a major behind-the-scenes role in a new PBS documentary made to promote financial literacy.
The HSBC in the Community (USA) Inc. Foundation sponsored "Your Life, Your Money," which premiered on most PBS affiliates Wednesday night. The hour-long program offers straightforward advice on topics from budgeting, credit cards and student loans to taxes, health insurance and retirement savings.
HSBC donated almost $1.5 million to the WNED Buffalo/Toronto television station to produce the documentary. Though the company's sponsorship was mentioned in the opening and closing credits, HSBC otherwise stayed offscreen.
"We really looked to just get the real concepts out," said Heather Nesle, an HSBC vice president of community and philanthropic services, after a 6:30 p.m. screening in New York that her company held on Tuesday. (She even told young adults during a question-and-answer session afterward that, if they needed further financial education, "any bank, not just HSBC," should be able to provide more information.)
HSBC's foundation, which focuses on financial education and environmental projects, approached WNED more than a year ago with its grant offer and the idea for a television program.
"We allowed them to develop it without having to showcase HSBC, but we did provide a lot of resources," Nesle said. For example, "we organized all the shoots — a lot of the footage was taken in HSBC branches."
The program is hosted by the actor Donald Faison and includes advice from personal-finance experts like Beth Kobliner, Michelle Singletary, Ron Lieber and the hip-hop mogul Russell Simmons. (His RushCard, a high-profile, and high-cost, prepaid card, is not mentioned.)
But the documentary's focus is on profiles of six adults who are starting, or restarting, their professional and financial lives. For example, one segment follows Rochelle James, a New Yorker who overcame debt and the financial stress caused by her mother's death by becoming a union electrician who now earns $47 an hour.
Her story — and the documentary's overall message about the importance of financial literacy — seemed to resonate with the target audience, at least judging by responses at the screening.
The audience members, who ranged from elementary school to college age and beyond, stayed around for a panel discussion afterward, asking questions about financial basics until almost 9 p.m. (HSBC did provide incentives in the form of piggy banks for question-askers — not to mention snacks.)
"I sort of thought, 'It's the first day of school, and on a Tuesday night, who's going to show up?' And I had to turn people away," Nesle said.
Trough of the 'U'
Even if house prices bottom out in mid-2010, they are unlikely to appreciate "for a protracted period," according to Navneet Agarwal, a senior vice president at Moody's Investors Service Inc.
A significant number of the 1.8 million units expected to go through foreclosure this year are still working their way through the process, and that number does not take into account "the conundrum of unaffordability" and underwater mortgages, Agarwal wrote in a report published Wednesday.
"Given the outsized bet that many homeowners made on rising home prices when they took out their mortgage loans, many borrowers today either cannot or will not continue to pay on their underwater mortgage loans."
A Third Way
Private-equity investors originally were going to buy toxic residential loans directly from banks. When that plan failed because buyers and sellers were too far apart on price, the goal became to buy the problem loans from the Federal Deposit Insurance Corp. Now a third option is being tried.
Edward Carpenter, the chairman of Carpenter & Co., an Irvine, Calif., investment bank that specializes in start-up banks, said he has raised $450 million to buy problem assets by purchasing the banks themselves.
At a panel discussion in Irvine last week sponsored by Manatt, Phelps & Phillips LLP, Carpenter said his strategy is to separate the "bad bank," rework its loans and sell them when the market rebounds. He will keep a stake in the remaining "good bank."
Carpenter estimated that roughly 2,800 of the 8,500 banks in the United States need to raise capital right now and said those are the banks to bet on because they are cheap.
"Everything in our economy has repriced," he told the audience of 125, mostly bankers. "We're betting on revaluation in the small-bank sector and problem loans."
Eye on Applications
Applications for both purchase and refinance loans jumped in the week that ended last Friday as the average 30-year fixed rate fell another 13 basis points, to 5.02%, the Mortgage Bankers Association said Wednesday.
The trade group said its refinance index increased 22.5%, its biggest gain since March. The MBA's seasonally adjusted purchase index rose 9.5%, to its highest level since January. The drop in the 30-year rate came after a 9-basis-point fall the previous week.
This Week's Mortgages News
Fed Sees Some Homebuying Up
American Banker | Sep 10
Residential real estate markets continue to bounce back from the doldrums of the recession, according to a Federal Reserve report released Wednesday.
California Lender Plans Funding of Broker-Originated Jumbos
National Mortgage News | Sep 9
In a few weeks CMG Mortgage in San Ramon, Calif., will bestow a gift on loan brokers in five western states: It will begin accepting their submissions for a new jumbo product with balances as ...
Treasury to Encourage Short Sales
American Banker | Sep 9
The Treasury Department plans to announce financial incentives for servicers to pursue short sales and deeds in lieu of foreclosure for troubled homeowners who do not qualify ...
Problems Pile Up in the Warehouse Lending Market
National Mortgage News | Sep 4
The failure of Colonial Bank a few weeks ago, coupled with some high-profile departures among regulators and agency heads, could exacerbate the ongoing problems in warehouse lending.
DATA
Infographic: Mortgage Market WatchAmerican Banker | Sep 9
Infographic: Weekly Mortgage Wrap-Up
American Banker
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Lovethisarea
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Posted: Thu Sep 10th, 2009 06:01 am |
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I think we are going to stick with our home. (Short Sale, Foreclosure... possible Bankruptcy) It just feels Too Wrong, we can't bring ourselves to do it. So... looks like we will continue to be the last ones standing... out of those we know anyway.
Bambi wrote:
Lovethisarea wrote: Bambi I have a question for you. I am being told by a real estate agent that the only way my mortgage lender (Countrywide) will even consider a short sale is if we are 60-90 days late on our mortgage. Is this correct? This is a very tough decision as it is and I want to make sure that if we go through with this we are doing it right. I thought if you were 60-90 days late on a mortgage it would be the same as foreclosure... I am told by the real estate agent that this is not true. They say that a short sale will only be on our credit for 2-3 yrs and a foreclosure would be 7-10. Thank You for any info, it is much appreciated.
First of all, I would speak direct to my lender if I were you. It depends on their policy. Countrywide is very busy and I understand they are taking about 6 months to negotiate a short sale. Foreclosures will give you more time in the home while the lender holds it. 90 days is the minimum late time for foreclosures. Short sales have usually been 60 to 90 days late before actions taken. Concerning the credit score? Contact the credit bureau. You might want to google some of these questions too. But the best thing to do is set up a good working relationship with all parties. Good luck LTA.
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Bambi
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Posted: Wed Sep 9th, 2009 05:32 pm |
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More "stuff" to research.
New Credit Scoring Model Could Improve FICO Scores - 09.09.09
Watch Video
New credit scoring model sound great, so, let's get it going. Do a little profile check on that property before you order that FHA appraisal, or you might get burned.
FHA on track for busiest year as it backs 23% of mortgages
5 comments] by Stephanie Armour - Sept. 2, 2009 11:16 AM
USA Today
Almost a year after the federal government launched its rescue of the housing market, nearly one in four new mortgages is insured by the Federal Housing Administration.
With less than a month to go in the 2009 fiscal year, the FHA is on pace for its busiest year.
From Oct. 1 through mid-August, applications for FHA single-family-home mortgages were up 50%, to 2.52 million, from the same period a year earlier.
Approvals for purchases, refinancings and reverse mortgages rose 70% to 1.67 million.
Eighty percent of the FHA mortgages for purchasing homes went to first-time buyers drawn to the FHA's low-down payment requirements, starting at 3.5%. Private lenders making conventional loans typically require at least 10% down.
The FHA's market share, about 3% in 2006, has swollen to more than 23%. With credit still tight, many borrowers could not get a mortgage without FHA help.
FHA loans "are one of the most important sources in this market," says Mark Zandi of Moody's Economy.com. "Without FHA, the housing slide would be much more severe. We wouldn't be talking about a recovery now. We'd still be talking about a crash."
FHA loans also have become more popular because of the demise of many subprime lenders, which sometimes allowed buyers to purchase a property with nothing down and no documentation of income.
In addition, FHA increased its loan limits at the beginning of the year. Previously, the maximum had been $362,790. The new ceiling raised that to $729,750 in high-cost areas such as Boston , New York and Washington , D.C.
Also fueling demand for FHA-insured loans is this year's tax credit of up to $8,000 for first-time home buyers.
But as FHA insures more loans, it is also assuming more risk.
Foreclosures on homes with FHA mortgages rose to 1.76% in June from 1.6% a year ago, and the default rate — for mortgages 90 days or more delinquent — was 6.88%, up from 5.57%.
"I'm very concerned about risk," says FHA Commissioner David Stevens, who adds that risk is mitigated in part because applicants today are more solid than those in recent years.
Borrowers with FHA-insured loans now have average credit scores of about 690, compared with about 630 two years ago.
FHA also has tightened lending standards, requiring a 10% down payment for those with credit scores below 500.
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Lovethisarea
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Posted: Wed Sep 9th, 2009 01:50 am |
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| Thank You Bambi.
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Bambi
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Posted: Wed Sep 9th, 2009 01:02 am |
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Lovethisarea wrote: Bambi I have a question for you. I am being told by a real estate agent that the only way my mortgage lender (Countrywide) will even consider a short sale is if we are 60-90 days late on our mortgage. Is this correct? This is a very tough decision as it is and I want to make sure that if we go through with this we are doing it right. I thought if you were 60-90 days late on a mortgage it would be the same as foreclosure... I am told by the real estate agent that this is not true. They say that a short sale will only be on our credit for 2-3 yrs and a foreclosure would be 7-10. Thank You for any info, it is much appreciated.
First of all, I would speak direct to my lender if I were you. It depends on their policy. Countrywide is very busy and I understand they are taking about 6 months to negotiate a short sale. Foreclosures will give you more time in the home while the lender holds it. 90 days is the minimum late time for foreclosures. Short sales have usually been 60 to 90 days late before actions taken. Concerning the credit score? Contact the credit bureau. You might want to google some of these questions too. But the best thing to do is set up a good working relationship with all parties. Good luck LTA.
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Lovethisarea
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Posted: Tue Sep 8th, 2009 10:42 pm |
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| Bambi I have a question for you. I am being told by a real estate agent that the only way my mortgage lender (Countrywide) will even consider a short sale is if we are 60-90 days late on our mortgage. Is this correct? This is a very tough decision as it is and I want to make sure that if we go through with this we are doing it right. I thought if you were 60-90 days late on a mortgage it would be the same as foreclosure... I am told by the real estate agent that this is not true. They say that a short sale will only be on our credit for 2-3 yrs and a foreclosure would be 7-10. Thank You for any info, it is much appreciated.
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Bambi
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Posted: Thu Aug 27th, 2009 03:21 pm |
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| Those people bought their land years ago out in the San Tans. They built that home from scratch. No frenzy purchase. Last edited on Thu Aug 27th, 2009 03:24 pm by Bambi
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starleen
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Posted: Thu Aug 27th, 2009 07:18 am |
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Bambi wrote: Here is the backyard of a beautiful 4000 sq. ft. home with a guest house, that just sold (via short sale) for $360k. They owed $700k. It is on 5 acres out here in the San Tans. That backyard pool is a paradise, and worth about 1/2 of the sales price imo. I was selling vacant lots of comparable size out there for $575k in 2005.
Painful. But someone got a heck of a deal.
Not a heck of a deal. They paid market value. The loser is the prior owner who bought in the frenzy. You make (or lose) your money when you buy, not when you sell.
The winners are the mortgage and RE agents - they make money on the transactions no matter what.
The numbers of listings are down, way down according to the RE website browser I frequent, indicating that the bottom feeders - I mean investors - have passed by. And some honest homeowners too, good for them. Prices are down to where they were before the bubble began.
It is misleading to say a property, like this one, sold for a 2005 price or 2004 price and call it a bargain. The 2006-2008 prices were falsely supported by the bubble and the frenzy.
And talk of the RE crisis being over because of housing data being improved over...over what? They just say it's better. Better than last month, last year, better than 2003? As always, buyer beware.
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pipeman
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Posted: Wed Aug 26th, 2009 05:24 pm |
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not just a great price, but a totally awesome view.
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Bambi
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Posted: Wed Aug 26th, 2009 05:00 pm |
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Here is the backyard of a beautiful 4000 sq. ft. home with a guest house, that just sold (via short sale) for $360k. They owed $700k. It is on 5 acres out here in the San Tans. That backyard pool is a paradise, and worth about 1/2 of the sales price imo. I was selling vacant lots of comparable size out there for $575k in 2005.
Painful. But someone got a heck of a deal.
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Bambi
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Posted: Tue Aug 25th, 2009 04:13 pm |
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More Good News for the Housing Market and the General Economy!!!
On Friday we had Ben Bernanke saying that there are signs that the economy is improving, or at least leveling out. He went on to state that the early stages of a recovery would most likely be modest. And if to prove it what Bernanke was saying, Friday saw a report that Existing Home Sales were up over 7% to a 2-yr high. And it stands to reason that at some price point for the market’s decline to level-off and/or rebound , wouldn’t the Home Sales numbers have to look better great? In this number, the median price fell 15%, aided by foreclosure numbers, government credits for first-time buyers, and relatively low rates.
Friday also saw the US Stock Market continue to rally, closing at new 2009 highs! As one might expect, with the stock market rally we saw mortgage rates increase. As of this morning, mortgage rates are roughly 0.25% higher – with 30-yr fixed rates still hovering in the low-mid 5’s.
It seems we may be in this mode of “two steps forward, one step back” for a while as the economy tries to halt it’s decline and stabilize. Friday saw four more bank closures, one of which was the 3rd largest bank closure of 2009, Guaranty Bank out of Texas . Guaranty is estimated to cost the FDIC, and taxpayers, $3 billion. Option ARM’s made up almost a third of Guaranty's single family mortgage portfolio, along with $1.2 billion of loans to homebuilders in California . In an interesting note, BBVA Compass, a U.S. subsidiary of Spanish bank Banco Bilbao Vizcaya Argentaria, agreed to assume all of Guaranty's deposits and will buy $12 billion of its assets, the first time an overseas-based bank has bought a failed U.S. bank this year. Three other banks failed: CapitalSouth Bank (AL), First Coweta (GA…and I doubt if this bank was named by an Italian dairyman in the winter), and ebank (GA).
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Bambi
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Posted: Sat Aug 22nd, 2009 06:55 pm |
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Or it could be this new program, which is just about the same as H4H program, which Bush initiated. Here's an article I found describing it.
If you are upside down and have no lates on your mortgage, you may qualify for what is called a “Short Pay” refinance. Basically, what the Government is doing is reducing your principal balance to 90% of the current market value (writing down the principal balance). So if you owe $600,000 and your property is only worth $500,000, the Government will allow you to write down the principal balance to $450,000 (a $150,000 principal reduction). The tax rules will be very similar to a Short Sale (please consult with a CPA – sometimes it makes more sense to file BK and let your property go into Foreclosure). However, the government will participate in 50% of your future equity when you sell. The rules and guidelines are not quite out on this program, but it is effective October 1, 2008. Solomon Financial has options if you are upside down.
If you have enough equity to refinance, it may not make sense to do “short pay” refi. It might make more sense to do a FHA refi up to 97%. Call us & we can figure out which situation makes the most amount of sense for you. You will probably need to call your CPA as well.
Here is an example of a recent client's mortgage scenario:
"John and Mary" bought their home for $140,000 twenty years ago.
They currently owe about $800,000.
Their home is worth $750,000 after dropping in value about 35% over the last 18 months. They took out cash and used their home as a cash register.
They are going to have a capital gain when they sell.
A real estate agent suggested they do a short sale to protect their credit. I told them to talk to their CPA because, if the property sells for $750,000 and they bought it for $140,000, they will have a capital gain of approximately $610,000 minus any improvements and closing costs (real estate commissions, etc.). If you have a capital gain above $250,000 (single) and $500,000 (married), then you will have some tax ramifications unless you can prove insolvency if they end up doing a short sale (please consult with your CPA). There is also a 1099-C issue as well on a short sale that you don’t have on BK & Foreclosure (please consult with your CPA).
another article............................
Q- IS THIS THE BUSH PLAN FOR HOMEOWNERS?
A- no this is not the (H4H) Hope for Homeowners program, however this is Similar program that allows homeowners to save their home and avoid foreclosure.
Q- IS THIS THE OBAMA PLAN FOR HOMEOWNERS "HASP"?
A- no this is not the Homeowners Affordability and Stability Program (HASP), however this is Similar program that allows homeowners to save their home and avoid foreclosure. they are no LTV restrictions.
Q- WILL I HAVE TO GIVE UP 1/2 OF MY EQUITY IF I SELL MY HOME LATER?
A-No you don't have to.
Q-WHAT IF I MISSED A PAYMENT OR FEW?
A- This program is for homeowners that are current on their mortgage payments the last 12 months. however if you have 1 late an exception maybe made, if more than 1 late please call to discuss your options.
Q-WHAT IF I OWNED MORE THAT 1 HOME?
A-you may still qualify if you owned more that 1 home, this loan program can only be used on your primary residence only.
Q-IS THIS A GAURANTEED PROGRAM?
A-No it is not, the final decisions of the short payoff depends on your lender and/or investor on your loan.
Q-Why would the bank/loan servicer agree to a Short-Payoff Refinance and not just foreclose on the property?
A-Banks/Loan Servicers books are becoming swamped with REO's, so now they're more open to negotiations than ever. Remember, foreclosing on a property requires large amounts of legal fees and then the home is typically sold at a substantial discount off of the fair market value by the bank. The Short-Payoff Refinance allows the loan servicer to avoid a majority of the legal fees and lets the new lender make its largest loan based on the fair market value. In most cases, a Loan Modification can't solve the problem as many loan servicers are not lenders; a Short-Pay Refi becomes a very powerful alternative. Short-Payoff Refinances put borrowers in better positions than standard loan modifications because aside from lowering the payment, they also lower the principle balance with an FHA insured loan.
Q- What are the qualifications?
A- See Loan Qualification
3 STEP PROCESS
To determine if your lender will participate in Short Pay Refinance !
See Lenders that accept Shortpay Refinances
Last edited on Sat Aug 22nd, 2009 07:12 pm by Bambi
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Bambi
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Posted: Sat Aug 22nd, 2009 06:36 pm |
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I think you are talking about this Program, but not sure.
‘FHA short refinance’. If HSBC agrees to permit an FHA short refinance through the Hope For Homeowners program then the HSBC loan will be written down to 90% of the appraised value. You will have an instant 10% equity. If you sell the property within the first year for the current appraised value then you will forfeit any right to the 10% equity to HUD. This 10% equity is referred to as the ‘initial equity’ and the homeowner’s percentage of the initial equity grows according to HUD year after year assuming sale of the property as follows:
- During Year 1, 100% of equity is paid to FHA
- During Year 2, 90% of equity is paid to FHA
- During Year 3, 80% of equity is paid to FHA
- During Year 4, 70% of equity is paid to FHA
- During Year 5, 60% of equity is paid to FHA
- After Year 5, 50% of equity is paid to FHA
The above is HUD’s scale for ‘initial equity’ which is the difference between the FHA appraised value today and the new FHA loan amount. Since the new FHA loan amount is at 90% LTV through the FHA Short Refinance program, that ‘initial equity’ is 10%.
Here’s an interesting piece of information. If HSBC will participate in the FHA short refinance program through H4H and accommodate one by writing the loan balance down to 90% of the FHA appraised value today, then your new mortgage amount will be based on that FHA appraised value (90% of FHA appraised value). There is another facet to the H4H short refinance program with regards to one's future sale of the property. If you were to refinance today at 90% of the appraised value and you were to sell next month for a price higher than the FHA appraised value today, then you would keep 50% of the net difference between the future sales price and the current FHA appraised value. FHA keeps the other 50%. Not bad.
All in all, I like the H4H program; but bear in mind that it is a voluntary program and lenders aren’t usually willing to do anything voluntarily that reduces their profits.
In fact, take a look at this. Perhaps the HOPE for Homeowners Program should be called the HOPELESS for Homeowners Program because no lenders appear willing to participate in the program. None of the Big Four lenders will fund the HOPE for Homeowners Program through FHA: not Citigroup, nor Wells Fargo nor Countrywide nor Bank of America. Now it may have changed by now, but not sure. This program has been around for at least a year. Problem is the lenders.
Thanks for the question and hope this helps pipe.
Last edited on Sat Aug 22nd, 2009 06:37 pm by Bambi
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pipeman
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Posted: Sat Aug 22nd, 2009 06:33 am |
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Bambi, have you heard of this?
SHORT REFINANCE
Federal Housing Administration (FHA) and the U.S. Department of Housing and Urban Development has approved a new loan program to refinance your home at market value!
Refinancing at current market value is the better option than loan modification. It is a transaction, where the current lender agrees to accept less than the full amount owed on your property. It results in reduction of principal on your loan. A Short Payoff is when your current lender reduces the principal balance on your mortgage and allows you to refinance or sale your home at current value.
Key differences:
Loan modification negotiates change in rates and terms leaving principal unchanged.
Short Refinance negotiates reduction in principal.
The process is similar to a short sale but, instead of the property being sold, it is refinanced with a new lender. The short-refinance allows the homeowner to retain ownership of the property.
In many cases, short refinance requires approval and consent from a new lender and will require better credit score along with a reasonable debt-to-income ratio. We are working with the largest pools of lenders, which are available to help with short refinance.
Refinancing at Market Value
Must be current on mortgage payments
Minimum middle credit score is 620
No more than one 30 late mortgage payment in last 12 months
Documentation of three most recent mortgage payments
Payoff letter
Written Principal Reduction Agreement from current lender – The agreement must include the name of the borrower and must indicate the loan amount being paid off
Primary residence only
Must have sufficient documented income to qualify for the new lower loan amount (no stated income)
Must be able to prove hardship
Borrower with two mortgages are not eligible at this time
Many lenders are now cooperating with a principal reduction to refinance your home. The first step is to contact your existing lender and verify that they will cooperate with a short payoff/settlement to refinance. The next step is to apply. We will request your employment, income, and asset documentation to verify that you will qualify for a new FHA loan at current market value and issue a loan approval. We will then negotiate with your current Lender to achieve the desired principal reduction for your refinance.
EXAMPLE: Short Refinance (Refinancing At Current Market Value)
Current mortgage: $300,000
Current value: $220,000
New loan(97.75% of current value): $215,050
Closing cost for new loan: $5,000
Current lender approves short payoff for: $210,050
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Bambi
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Posted: Thu Aug 20th, 2009 06:57 pm |
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Shareholders OK Pulte-Centex merger
Pulte Homes, a major home builder in the Phoenix area, won shareholder approval Tuesday to purchase Centex Corp., a deal that will create the nation’s largest home-building company with combined revenue of $11.6 billion. The deal closed Wednesday, according to Jacque Petroulakis, a spokeswoman for Pulte in Phoenix.
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Lovethisarea
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Posted: Wed Aug 19th, 2009 01:40 pm |
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Bambi wrote:
But why would one sell if they bought originally for such a small amount, consequently taking a huge hit in this market? Lost job plus other losses perhaps, but many had so much equity accrued by 2005-06, that they decided to borrow against it....spend it early......so they pulled their equity out thru 2nd mortgages or refinancing. Now that additional payment brings pressure. And they seek relief.
Now you see what a huge profit margin these builders/developers had built into these homes. It's time to start over. Only this time we're wiser......I hope. Better safeguards and effective cost controls, with less greed. Win-Win.
We know someone that did that... bought low... racked up a bunch of home equity loans during the boom and then last year bought a new home and then walked from their old one. Made me angry thinking about it back then, now I know so many that have done it I'm kind of just numb to it now.
This situation is screwed up.... like you said we are wiser now, hopefully. This has definitely changed my feelings on having debt, it is my goal now to have no debt. But if no one in the US had debt I would imagine that would create another problem... no plastic money would mean less spending, less spending would turn into less jobs, etc. Homes aren't the only thing that would have a false demand, I'm pretty sure there would be a lot more businesses closing and the domino effect would continue.
If anything this whole experience has made a simpler life look far more appealing... for us anyway. After experiencing something like this, there is a point that you start to notice that your things own you, more then you own your things. No matter if we stay or if we go, we are downsizing our things. I am sick of cleaning my things, organizing my things and buying more things to put my things in.
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Bambi
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Posted: Wed Aug 19th, 2009 01:30 am |
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Lovethisarea wrote: I didn't buy here 9 years ago... 1st home on the west side of town, sold it right before the prices shot up, stayed with family for a year trying to figure out where to move and then battled to buy a home here when prices jumped a lot in the boom 3 going on 4 years ago. Sold low... bought high, bad choice after bad choice. :'( Though I hated where I used to live and love where I live now so its not all bad. And if I lived in my last home we would still owe more then we paid 9 years ago for it because prices have crashed that hard... I'd definitely rather live here then there!
The market must be a lot better out here because you say that people that bought 9 years ago are still selling for more then they bought for... thats crazy too because back that long ago I can't imagine there was anything out here for many, many miles, no roads more or less businesses. This is where we moved from... not 'our' old home but same model.... paid $96,000 for it 9 yrs ago, look what its going for now... :'( http://www.realtor.com/realestateandhomes-detail/12030-W-Scotts-Drive_El-Mirage_AZ_85335_1099266087
Same situation with my moms old home near Phoenix in Glendale... she paid $45,000 for it 19 yrs ago (and that was considered a bargain at the time) ... now the same house is selling for in the 20's. Amazing that the people out here who bought 9 years ago are still turning around and selling for more.... they are very lucky... thats not the case with most people.
What is your take on the rent being lower then mortgage in those areas not as affected as us? Think there is still a bubble in Phoenix, Gilbert,etc?
misunderstood. There is a bubble over all of us in this State, still. But it is losing it's pressure.....slowly. It takes time as it is so expansive this time. 9+- years ago homes were selling in the $80's and 90's out here. I'm estimating, but it's when Larry Miller started San Tan Heights and it was his builders product. And GJ with Johnson Ranch. Happened real fast, thanks to the County Manager, Stan the Man and the Builders working so closely together. If the original buyers get the original amount today they would be breaking even. But some are getting more because several buyers want the same home. So now we are in the $100's.-$110's. Very little profit. And yes, few are selling for more as that is the exception rather than the rule. It's usually a "have to" situation, not a want to.
But why would one sell if they bought originally for such a small amount, consequently taking a huge hit in this market? Lost job plus other losses perhaps, but many had so much equity accrued by 2005-06, that they decided to borrow against it....spend it early......so they pulled their equity out thru 2nd mortgages or refinancing. Now that additional payment brings pressure. And they seek relief.
Now you see what a huge profit margin these builders/developers had built into these homes. It's time to start over. Only this time we're wiser......I hope. Better safeguards and effective cost controls, with less greed. Win-Win.
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Lovethisarea
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Posted: Tue Aug 18th, 2009 11:09 pm |
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I didn't buy here 9 years ago... 1st home on the west side of town, sold it right before the prices shot up, stayed with family for a year trying to figure out where to move and then battled to buy a home here when prices jumped a lot in the boom 3 going on 4 years ago. Sold low... bought high, bad choice after bad choice. :'( Though I hated where I used to live and love where I live now so its not all bad. And if I lived in my last home we would still owe more then we paid 9 years ago for it because prices have crashed that hard... I'd definitely rather live here then there!
The market must be a lot better out here because you say that people that bought 9 years ago are still selling for more then they bought for... thats crazy too because back that long ago I can't imagine there was anything out here for many, many miles, no roads more or less businesses. This is where we moved from... not 'our' old home but same model.... paid $96,000 for it 9 yrs ago, look what its going for now... :'( http://www.realtor.com/realestateandhomes-detail/12030-W-Scotts-Drive_El-Mirage_AZ_85335_1099266087
Same situation with my moms old home near Phoenix in Glendale... she paid $45,000 for it 19 yrs ago (and that was considered a bargain at the time) ... now the same house is selling for in the 20's. Amazing that the people out here who bought 9 years ago are still turning around and selling for more.... they are very lucky... thats not the case with most people.
What is your take on the rent being lower then mortgage in those areas not as affected as us? Think there is still a bubble in Phoenix, Gilbert,etc?
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Bambi
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Posted: Tue Aug 18th, 2009 04:32 pm |
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Lovethisarea wrote: I heard somewhere a while back that rent being lower then a mortgage is a sign of a bubble, do you think there is truth in that? I am still seeing rent lower then mortgages is some places... for example Downtown Phoenix... big luxury condos renting for $1,400 but selling for $320,000+ that would be a $2,100+ mortgage according to a mortgage calculator I found online.
9 yrs ago we bought our first home & thought we were making the best choice ever.... a great investment in our future. 9 yrs later we have less to show for it then we would have renting... we are upside down on our home by $130,000+ and are out all of our money that we put into upgrades, down payments, repairs, etc. The going rent for this house is nearly half of our mortgage payment. We would have been much better off renting and putting our extra money in a savings account.
You did make a good choice. If you bought out here 9 years ago LTV, then you witnessed the rise in values. Had you sold at the peak (2005), you would have been one of the ones who benefited enormously in that boom, perhaps tripling your original personal investment. Some of those people are using their sale proceeds to turn around and pay cash for two homes. It's all about timing. At the beginning, new homes were selling for around $80k out here. The return on that "personal" investment was good if you sold "short". Now it has regressed back to the original amounts......boom/bust. To figure out if your investment is better in a savings account, just figure it out by multiplying about 2% of your present equity over the next 5 years, plus the savings by renting. Now estimate the rise in your equity over the next 5 years based on history. If you bought 9 yrs. ago, your payments and morgage should be low.
Another climb will occur. Then sell. Or cut your losses now. Your choice. The same events of boom/bust is going on in the stock market. Please keep in mind that we in the SanTanValley area are suffering the greatest negative impact of this downturn. In Gilbert, the impact is less, supply and demand is much stronger there as less inventory exists to compete with. A home that rents for $850. a month here, will command $1200. a month there. Also, it's location is more centralized. We're quite a ways out, which is why the home prices were so low in the first place.
Little will change until consumer confidence returns. Consumer confidence returns when jobs become available and families can start spending again. China is suffering a huge economic slump, because of the drop in exports. We were the largest recipients of those exports. If we don't buy China's products, they suffer. If you see their economy improving, that will be a sign that our's is too. Lots of signs to look for to ascertain if we are improving, therefore giving rise to consumer confidence, therefore climbing out of this black hole. Just look for the positive signs then jump on board.
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Lovethisarea
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Posted: Tue Aug 18th, 2009 03:58 pm |
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I heard somewhere a while back that rent being lower then a mortgage is a sign of a bubble, do you think there is truth in that? I am still seeing rent lower then mortgages is some places... for example Downtown Phoenix... big luxury condos renting for $1,400 but selling for $320,000+ that would be a $2,100+ mortgage according to a mortgage calculator I found online.
9 yrs ago we bought our first home & thought we were making the best choice ever.... a great investment in our future. 9 yrs later we have less to show for it then we would have renting... we are upside down on our home by $130,000+ and are out all of our money that we put into upgrades, down payments, repairs, etc. The going rent for this house is nearly half of our mortgage payment. We would have been much better off renting and putting our extra money in a savings account.
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Bambi
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Posted: Mon Aug 17th, 2009 09:26 pm |
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Talking about Banks. Union Bank in Queen Creek is my bank. It was bought out recently by Unison Bank in N. Dakota. But they didn't find buyers for their other local banks.
4 banks closed by the FDIC last Friday......two of them were here in AZ.
Outside of Colonial, the largest collapse of the day was Community Bank of Nevada in Las Vegas , which went under with assets of $1.52 billion and total deposits of about $1.38 billion. The Nevada bank did not find a buyer like Union Bank in QC did, leaving the FDIC in control of its assets. MidFirst Bank of Oklahoma City assumed all deposits of two failed Arizona banks, Union Bank in Gilbert and Community Bank of Arizona in Phoenix . Community Bank of Arizona had assets of $158.5 million and total deposits of approximately $143.8 million. Union Bank had assets of $124 million and total deposits of approximately $112 million. The two failures, the first in Arizona this year, will together cost the FDIC's insurance fund around $86.5 million.
The 77 bank failures so far in 2009 has more than tripled last year's total of 25. But when one fails, another rises.
Let’s end on a positive note shall we …….. The home builder index that measures the sentiment of new home builders like Pulte, Lennar, Hovanian, etc., while still on the negative side, increased slightly, indicating that home builders’ optimism about the housing marke
Last edited on Mon Aug 17th, 2009 09:27 pm by Bambi
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Bambi
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Posted: Mon Aug 17th, 2009 06:48 pm |
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QCVillager wrote: no specific source to cite since i just don't remember. it is something i've just heard on TV or read someplace in passing or both. that is why i asked the question... since i didn't remember who had said it or whether it was valid info or not.
If the banks would just listen to the homeowner's plea for help when he misses that first payment. Yet they don't. Or can't, according to the policies that are in place. I've had clients call their lender for help after missing the first payment. Lender says can't help you until at least a minimum of 3 payments are missed. Call back then.
That's the culprit right there. Remove that time constraint and many loans can be salvaged early on. Payments should be reduced immediately, to assist the homeowner and inspire them to stay put. You can place those additional backcharged amounts into the back end of the loan or spread them out over the life of the loan, with increases or payoffs, when the economy is healthy. Neither is an option currently that I'm aware of. That's alot better than selling the home at a foreclosure sale for half of it's market value, thus impacting the rest of us. Now the dominos will fall, one after another.
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QCVillager
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Posted: Mon Aug 17th, 2009 06:32 pm |
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no specific source to cite since i just don't remember. it is something i've just heard on TV or read someplace in passing or both. that is why i asked the question... since i didn't remember who had said it or whether it was valid info or not.
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Bambi
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Posted: Mon Aug 17th, 2009 06:02 pm |
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QCVillager wrote: Bambi,
i get the part about the anti-deficiency rules in a foreclosure... and that seems to confirm what others have told me... that Instead of foreclosing, the lenders are leaving the homeowner in the house so that they never have to take it back. if the home never goes to foreclosure, then the lenders WILL get those late fees, extra interest and such.
I can only tell you my experiences. Who is your source when you said others told you?
First of all, no lender will start any type of proceedings until you are at least 3 months in the arrears....even if your request it. If you are 3 months in the arrears, then most likely you have lost your job. That means inevitably, the lender will be taking it back. By the beginning of the foreclosure time,(4th month) the homeowner has already moved out perhaps. Or possibly renting it out to another family who is unaware of the foreclosure, paying their rent to the homeowner who keeps it all in his pocket. If he is staying in the home, then it is only until the entire foreclosure process is over, thereby giving them extra free rent time in the home....maybe up to a year. All the lender does is send you paperwork to fill out. No one on one meeting takes place. No immediate followup. No one really cares. Just business as usual.
I have yet to find a family who is willing to work with the bank on foreclosures, when they have 3 months of back payments to make up plus all the interest and fines and fees on top of that....and they are unemployed. That's why they are walking. If they would start the process before the 3 months, when they lose their job, then many could possibly be saved without huge amounts being added on top. Nip it in the bud when the homeowner requests help in the beginning. That's not happening. They are letting it go on too long before they are willing to intercede. By then it's too late.
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QCVillager
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Posted: Mon Aug 17th, 2009 05:17 pm |
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Bambi,
i get the part about the anti-deficiency rules in a foreclosure... and that seems to confirm what others have told me... that Instead of foreclosing, the lenders are leaving the homeowner in the house so that they never have to take it back. if the home never goes to foreclosure, then the lenders WILL get those late fees, extra interest and such.
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Bambi
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Posted: Mon Aug 17th, 2009 04:37 pm |
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QCVillager wrote: i am no expert in these matters and so i bring forth this that i have heard and would like to hear what others know or think about it...
1) very few people have been helped by the federal program designed to help homeowners.
2) one of the reasons that lenders are extending the dates on foreclosures is because they see the market at least beginning to correct itself of it's own volition (not as a result of any federal intervention) and they Prefer to keep the homeowner in the house because during all this down time, they are racking up huge interest fees that the homeowner will have to be responsible for.
so i ask... what do others know and or think about those two things i have heard recently ?
I'll attempt to give an opinion based on my first hand knowledge of the market Jeff, so we don't have misnomers flying around. Others may have other opinions too.
number 1. Many people have been helped by the federal program. But the majority are being ignored by the Banks. The Banks are still gun shy and are still hording the money, but are beginning to be a tad more generous in the last few days. The Feds are beginning to put more pressure on them. We also are seeing some new banks rising to the occasion. That is history repeating itself.
number 2. False assumption. Racking up huge interest fees on the homeowner has no bearing. Many states, including ours, have anti-deficiency statutes that prevent going after the homeowner for anything related to that foreclosed home. Now the investor is a different story. Also, the Feds. are forcing the lenders to stall the foreclosures to continue to work with the homeowner. No homeowner is willing to add those fees to their bottom line. They will walk first.
The Federal Programs and Supply and Demand are working together in improving the confidence level of the American people. From my experience, when confidence returns, so does business. It is only trickling at this point. More good times on the horizon. Just try to be as positive as possible, so you won't miss that wave of confidence once it begins to hover over us. I've experienced it in past recessions. It just hasn't arrived yet in it's full splendor. But when it does, this will all be forgotten as we move on to another phase of our lives. 
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QCVillager
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Posted: Mon Aug 17th, 2009 03:51 pm |
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i am no expert in these matters and so i bring forth this that i have heard and would like to hear what others know or think about it...
1) very few people have been helped by the federal program designed to help homeowners.
2) one of the reasons that lenders are extending the dates on foreclosures is because they see the market at least beginning to correct itself of it's own volition (not as a result of any federal intervention) and they Prefer to keep the homeowner in the house because during all this down time, they are racking up huge interest fees that the homeowner will have to be responsible for.
so i ask... what do others know and or think about those two things i have heard recently ?
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Bambi
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Posted: Mon Aug 17th, 2009 03:26 pm |
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Here is the latest Foreclosure information! You will see in the Chart below that we currently have over 46,000 properties in “The Foreclosure Process”. That means that a Notice of Trustee has been filed, however the lender has not foreclosed on the property. It seems that the lenders are extending dates on foreclosures. Short sales continue to get approved at a faster pace every day.
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starleen
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Posted: Fri Jul 31st, 2009 08:02 am |
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Capitalism is recovering the economy, despite the stimulus bill of which a small fraction has been distributed.
Stay out of the way of the free market and the economy will flourish. The effect of the remainder of the stimulus money will no doubt stall the economy. Sell short.
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Bambi
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Posted: Wed Jul 29th, 2009 04:35 pm |
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Home Prices End their 3 Year Plunge......... Is this a sign of recovery?
http://www.nytimes.com/2009/07/29/business/economy/29housing.html?th&emc=th
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