Hello People.
Rates dipped under 5% last week to 4.99%, down 6 basis points from 5.05%. Sweet. On a $300,000 loan your monthly principle and interest payment will be $1608.63 instead of $1619.64, saving you a colossal $11.01. Que?
People, we all want to save money, but don't out smart yourself and try to time interest rates or the bottom of the market. If you like the house and the payment isn't going to force you to deliver news papers or eat "Blackened Alpo Delight" with a side of tap water, then go for it. Have your lender lock you in and be done with it. I see it too many times when people are paralyzed by trying be too savvy and wait for the perfect situation. Don't be one of those people saying "I could have bought real estate when prices and interest rates were at a all time low and I let $11.01 a month stop me". People, $11.01 doe not get you a twelve pack of bad beer. Would you let bad beer get in the way of buying a house? If so, you might want to check into a clinic.
Click on the title to read an article regarding this fabulous drop in rates.
God Bless.
Monday, January 18, 2010
Friday, January 15, 2010
Short Sale Guidelines A Go Go
Hi People.
The U.S. Treasury has set some new guidelines that are supposed to go into effect by April this year. The new rules include the lender giving a thumbs up or a middle finger to the seller with in 10 days of receiving a short sale offer. According to Rismedia "The Treasury rules, in addition to imposing a 10-day deadline for bank decisions, call for sellers to receive $1,500 moving allowances—and for the sellers to not have to repay any of the debt. Also, lenders will get $1,000 to cover administrative and processing costs, while investors owning the mortgages will receive a maximum $1,000 for allowing as much as $3,000 of a short sale’s proceeds to be distributed to less senior lenders".
This all sounds good, but I've done short sales on the seller's side and on the buyer's side. The lenders are swamped! Each short sale negotiator has 100s of files. This will be very interesting to see how this is received and what the penalty will be if and when they take 11 days. I predict that the short sale departments of lending institutions will be the new employer of people going "postal".
Click on the title to read more.
God Bless.
The U.S. Treasury has set some new guidelines that are supposed to go into effect by April this year. The new rules include the lender giving a thumbs up or a middle finger to the seller with in 10 days of receiving a short sale offer. According to Rismedia "The Treasury rules, in addition to imposing a 10-day deadline for bank decisions, call for sellers to receive $1,500 moving allowances—and for the sellers to not have to repay any of the debt. Also, lenders will get $1,000 to cover administrative and processing costs, while investors owning the mortgages will receive a maximum $1,000 for allowing as much as $3,000 of a short sale’s proceeds to be distributed to less senior lenders".
This all sounds good, but I've done short sales on the seller's side and on the buyer's side. The lenders are swamped! Each short sale negotiator has 100s of files. This will be very interesting to see how this is received and what the penalty will be if and when they take 11 days. I predict that the short sale departments of lending institutions will be the new employer of people going "postal".
Click on the title to read more.
God Bless.
Thursday, January 14, 2010
File that under "Foreclosure"
Hi People.
We did it! we broke the previous record of fillings for foreclosures, NODs, auctions & repos. Over achievement aside, what will this all turn into? How many of these will be saved by a loan re-modification (HA!)? How many people will get their job back (the verdict is out on that one)? How many people will short sale as opposed to letting their home go to foreclosure (either way you slice it, that person loses their home)? How many of these homes will end up back on the market in time for the newer buyer to enjoy the $8000 tax credit ($6500 for repeat offenders)? There's a ton to consider.
Check out this article by RealtyTrac and get educated.
http://rismedia.com/2010-01-14/realtytrac-year-end-report-shows-record-2-8-million-u-s-properties-with-foreclosure-filings-in-2009/
God Bless.
We did it! we broke the previous record of fillings for foreclosures, NODs, auctions & repos. Over achievement aside, what will this all turn into? How many of these will be saved by a loan re-modification (HA!)? How many people will get their job back (the verdict is out on that one)? How many people will short sale as opposed to letting their home go to foreclosure (either way you slice it, that person loses their home)? How many of these homes will end up back on the market in time for the newer buyer to enjoy the $8000 tax credit ($6500 for repeat offenders)? There's a ton to consider.
Check out this article by RealtyTrac and get educated.
http://rismedia.com/2010-01-14/realtytrac-year-end-report-shows-record-2-8-million-u-s-properties-with-foreclosure-filings-in-2009/
God Bless.
Wednesday, January 13, 2010
please God, help
People.
Nothing cute to say today about real estate. I'm not in the mood and I don't think it would be proper. I don't have to tell you what's going on in Haiti. No forwarding links. No one to quote. We all know it's bad. I just wanted to say, and I hope you will all join me in praying to God for help. Help for the people in Haiti, that they might find some relief and to trust God's plan. Help to the world's governments, that they can find the heart and the resources to help. And to the world, that we all will send what money and love that we can to help.
God Bless.
Nothing cute to say today about real estate. I'm not in the mood and I don't think it would be proper. I don't have to tell you what's going on in Haiti. No forwarding links. No one to quote. We all know it's bad. I just wanted to say, and I hope you will all join me in praying to God for help. Help for the people in Haiti, that they might find some relief and to trust God's plan. Help to the world's governments, that they can find the heart and the resources to help. And to the world, that we all will send what money and love that we can to help.
God Bless.
Tuesday, January 12, 2010
We are all 46 billion dollars richer, right?
Hi People. The Federal Reserve made a sweet $52B in 2009 off of the government securities it bought. After paying some bills, $1.4B to private banks and $4.6B to shore up it's own capital, the Fed's net was $46B and a 47% increase above 08's mark. Nice! But remember, this is a return "of" investment not a return "on investment. The Fed has a ways to go before it gets it's/ our money back. It is a step in the right direction.
All of this money is supposed to come back to us. I think I'll buy something frivolous.
Got to http://money.cnn.com/2010/01/12/news/economy/fed_profits.fortune/
to read more about it.
God Bless.
All of this money is supposed to come back to us. I think I'll buy something frivolous.
Got to http://money.cnn.com/2010/01/12/news/economy/fed_profits.fortune/
to read more about it.
God Bless.
Monday, January 11, 2010
FHA changes over yonder
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.
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.
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?
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