Hi People. Looks like some heavy changes may or may not be coming our way.
The problem according to the San Francisco Chronicle, 1/9/10.
"1 in 6 FHA borrowers nationwide is behind on payments, and the FHA's backup reserve fund is below the congressionally mandated minimum.
The delinquencies have led to concerns by members of Congress and a call by FHA administrators for program changes by the end of January.
As reforms are being debated, the FHA is trying to strike a delicate balance. The agency must ensure that its program remains solvent, while not making changes that are so restrictive that they knock a large number of buyers out of the market - and stymie the burgeoning housing recovery.
While some in Congress want a minimum 5 percent down payment for all future FHA loans - the current requirement is 3.5 percent - the FHA has not announced a down payment change."
The article goes on to talk about lender accountability, raising minimum FICO score requirements and raising mortgage insurance. All of these changes have to be done if FHA is to survive and continue helping people buy homes. What will it do to the housing market/ industry? I'm not sure. People on the news will say it is going to sink us, or save us. I doubt any of them will say what usually happens, just a blip in history. We will prevail! I promise, because if we don't I'll be out of a job and will not be held accountable for my stupid words. Read more about it and make up your mind what will or will not be affected. http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2010/01/09/MN4U1BDH0K.DTL
God Bless.
Monday, January 11, 2010
Sunday, January 10, 2010
Real estate in 2010
There are a ton of predictions out there, most of which are from people with some sort of an interest in the outcome. Watch out for news from people selling something. Let's look at some facts and then you can make up your mind.
The tax credit for first time home buyers goes away in April. Right now in San Diego people are scrambling to buy before this tax credit expires. Will the scrambling cease? There are other factors to consider.
Multiple offers are currently the trend. Houses are being bid up $10K, $20K, $30K and much more. Partly due to the tax credit, partly to do with the low prices and partly to do with the historically low interest rates. We know when the tax credit goes bye-bye. Will rates go up? Eventually, but I don't know when. I want to meet the guy who does know for sure. What will all of this do to prices and when?
The moratorium on foreclosed properties is supposedly up in March and is supposedly (using that word a bunch due to everyone doing some heavy guessing, but this is what they think) going to release some 5000 properties in the San Diego area. I do not know (I'd ask that same guy who knows if the interest rates are going to stay low) if those properties are coming on the market all at once, if some of them have been re modified or sold in a bundle to some investor. I just do not know. Then why did I bring it up? Oh yeah, those properties coming on the market will effect the supply and demand, supposedly.
Appraisal is the new dirty word in real estate. These multiple offers that used to drive up prices are now being put in a head lock by appraisals. It's not the appraiser's fault (I still have to get mad at someone), their hands are tied. They have to use comparables of recent sales to justify value. Supply and demand (unlike any other industry in the universe) does not come into play. the appraiser has to protect the bank from making a bad loan (that's part of the reason we are in this crazy mess).
Foreclosures and short sales will still be around.
Loans were really hard to get done in 09. Appraisals were part of it, but that wasn't all of it. Banks were changing the rules so fast their own lenders and underwriters couldn't keep up. I did more yelling, threatening, begging, cussing and butt kissing to my lenders than in my 11 previous years of being in real estate. I hope the banks have found some formulas that they are comfortable with because I'm exhausted and my lips are chapped.
Any predictions?
The tax credit for first time home buyers goes away in April. Right now in San Diego people are scrambling to buy before this tax credit expires. Will the scrambling cease? There are other factors to consider.
Multiple offers are currently the trend. Houses are being bid up $10K, $20K, $30K and much more. Partly due to the tax credit, partly to do with the low prices and partly to do with the historically low interest rates. We know when the tax credit goes bye-bye. Will rates go up? Eventually, but I don't know when. I want to meet the guy who does know for sure. What will all of this do to prices and when?
The moratorium on foreclosed properties is supposedly up in March and is supposedly (using that word a bunch due to everyone doing some heavy guessing, but this is what they think) going to release some 5000 properties in the San Diego area. I do not know (I'd ask that same guy who knows if the interest rates are going to stay low) if those properties are coming on the market all at once, if some of them have been re modified or sold in a bundle to some investor. I just do not know. Then why did I bring it up? Oh yeah, those properties coming on the market will effect the supply and demand, supposedly.
Appraisal is the new dirty word in real estate. These multiple offers that used to drive up prices are now being put in a head lock by appraisals. It's not the appraiser's fault (I still have to get mad at someone), their hands are tied. They have to use comparables of recent sales to justify value. Supply and demand (unlike any other industry in the universe) does not come into play. the appraiser has to protect the bank from making a bad loan (that's part of the reason we are in this crazy mess).
Foreclosures and short sales will still be around.
Loans were really hard to get done in 09. Appraisals were part of it, but that wasn't all of it. Banks were changing the rules so fast their own lenders and underwriters couldn't keep up. I did more yelling, threatening, begging, cussing and butt kissing to my lenders than in my 11 previous years of being in real estate. I hope the banks have found some formulas that they are comfortable with because I'm exhausted and my lips are chapped.
Any predictions?
Subscribe to:
Posts (Atom)