Palm Springs Area Real Estate

Short Sale Help with Laura Lake

2012-01-17T08:27:00.000-08:00

Laura Lake, Short Sale Agent with Keller Williams Realty, La Quinta, CA 92253, 760-464-8138

Are you behind in your payments?

Get the facts now, find out what all your options are: www.StopMyDesertForeclosure.com

See our Short Sale Process: short sale process

Helping Homeowners in La Quinta, Indio, Bermuda Dunes, Palm Desert, Indian Wells, Palm Springs and all other Coachella Valley areas.

New FHA Loan Rules

2010-10-01T18:04:00.001-07:00

If you are using FHA for your loan, then you should be aware of the changes taking affect on October 4th,

Up Front MIP will decrease from 2.25% to 1%

Annual MIP will increase from .50/.55 to .85/.90 for terms greater than 15 yrs
FHA will make the premium fee changes on all new case numbers effective October 4, 2010. (In order to avoid the Annual MIP increase, your buyers will need an FHA case number assigned before October 4th.)

We are waiting to hear about changes to seller contribution limits. We will issue a Bulletin as soon as FHA makes the announcement.

2010-09-08T17:15:00.001-07:00

Working away helping buyers find that "dream home"

SB 1178 was just approved by the Senate

2010-06-06T20:09:00.000-07:00

This bill will extend the anti-deficiency protections to homeowners who have refinanced "purchase money" loans and are now facing foreclosure in California. Most homeowners didn't even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender.

More info to come when this bill comes into law

This is good news for homeowner who only refianced to receive better terms on their loan and didn't take money out in the process.

Info on the new 2010 Calilfornia Tax Credit

2010-06-06T20:04:00.000-07:00

New 1st time Home Credit Started May 1, 2010. It's not as nice as the prior $8,000 tax credit, but its still a great thing to get when you purchase a home.

Fore more details about the credit, visit:

http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

Or call Laura Lake at 760-464-8138

2010-04-05T22:21:00.001-07:00

Daughter has new puppy, doing very well, leaning fast, so proud of both of them.

FHA Announces Policy Changes to Address Risk and Strengthen Finances

2010-01-23T22:12:00.002-08:00

FHA Announces Policy Changes to Address Risk and Strengthen Finances

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery.

Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”
Announced FHA Policy Changes:

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending

The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.

This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing

The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Update the combination of FICO scores and down payments for new borrowers.

New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.

This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.

This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Reduce allowable seller concessions from 6% to 3%

The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.

This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
Increase enforcement on FHA lenders

Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.

This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.

Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
Implement Credit Watch termination through lender underwriting ID in addition to originating ID.

This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.

Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.

HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:

Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite

Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

2010-01-23T22:12:00.001-08:00

check out my blog for the latest update of new FHA changes...Buyers Very Important you understand what is going on

http://ping.fm/qNhuh

2010-01-23T22:07:00.001-08:00

Off to Idllywild Tomorrow for BPOs, hope I don't need chains

When will the Market Bottom Out

2009-12-08T22:17:00.000-08:00

As a Real Estate agent, I am asked this question all time, more so for the past 4 years.

I was in our monthly business meeting this morning and our guest speaker had a great answer to this question, geared towards the buyer.
When you find a home, that is your "must have" house, in the "must have" area, with the right schools, amenities, parks, etc…in the price you are approved for and the terms you are looking for, then you have found your bottom of the market.

WOW...that really struck me and I wanted to share that with you. It just makes sense.

Very soon, I will be releasing my new buyer guarantee. I have developed a system to give you the highest and best chance of finding and purchasing your home utilizing foreclosed and short sale properties. I've worked on this system for the past 6 months with my buyers and they are finding it very helpful and successful.
Be sure to keep an eye out for my email announcement about this program very soon!

FHA Update - Sweeping Changes

2009-12-08T22:09:00.000-08:00

Sweeping Changes... Here is an update from my November 10th Post!

Sweeping Changes, ......that is the way regulators describe the upcoming modification to the existing FHA program.

It turns out FHA is writing so many mortgages the risk factor to maintain them has increased.

FHA has announced that changes are coming very soon, but the information we have so far is very general. We expect those changes to eventually take effect since every time HUD announces new guideline proposals most of them come true!.

So.. What is coming...?

1- Changes to the down payment. HUD proposes the minimum down payment to be raised from the current 3.5% to 5%.

2.- MIP Upfront Mortgage Insurance. This is currently 1.75% and can be financed with the loan. The new proposal mentions that the amount will be raised and part of it may be required to be brought to the table by the borrower, perhaps 1%.

3.- Seller concession to be reduced to 3% from the current 6%. This will force buyers to bring even more additional money to the table.

4.-Tougher Credit and DTI guidelines making it harder to get people qualified with lower incomes, higher debt and blemished credit.

What does that mean for our average buyer? Let's see an example:

A couple in escrow that is buying a $187,000 home with an FHA loan.

They are putting 3.5% down and the seller is paying for 5% of the closing costs. All the MIP is financed, so the borrower is bringing to close $6,545 since the 5% covers the entire closing costs.

Under new rules, the borrower potentially will need 1.5% more down,, 2% more in closing costs and 1% in upfront MIP.. That means the borrower will need to bring $14,950 to close making it tougher for them to buy a home.

Again,, these proposed changes are still in the works and nothing is set in stone. We do see the trend of HUD towards making it more difficult especially for first time buyers and middle income families.

Search Foreclosed by City

2009-11-10T18:07:00.001-08:00

Visit www.DesertForeclosureFinders.com and see all forecosed homes for sale by city!

We are currently at 5.1 months of inventory for the Palm Springs, which puts us in a sellers market.

Properties are getting muliptle offers. If you are looking to buy or sell, call or email me today!

Have a Great week

Think Waiting will save you money?

2009-11-10T18:04:00.000-08:00

Even if prices fall another $10,000 to $20,000 over the next 12 months, if interest rates raise just 1 point, the money you saved on the cost of the home, will be negated by the amount of interest you pay on the loan.

Do not gamble with the most importance purchase of your life, call me today and we will work together to determine if the time is right for you to buy now!

Should I Buy or Should I wait?

2009-11-10T17:58:00.001-08:00

If you are currently approved or looking to be approved to purchase a home through the FHA program at 3.5% down have a credit score below 700 and don’t have 10-20% for down payment plus closing costs, now may be the time to buy.

FHA could change guidelines early next year, changes that can affect your affordability, such as raising the 3.5% to 5% down and raising the minimum credit score. While we don’t have a crystal ball to know what will happen in the future, we do know what you can do now.

Call to email today so we can work together to find out if now is the time for you!

$8,000 homebuyers tax credit - Who qualifies?

2009-11-10T17:54:00.000-08:00

I've been getting a lot of calls and emails about how the $8,000 tax credit works now for current homeowners!

Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. Has provided the following scenarios illustrating how the tax credit rules for existing homebuyers will apply:

• Harry owned a home in 2001 and 2002 but sold it to relocate for a job. He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.

• Sue purchased a home in 2004 and has lived there since. If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.

• Jane purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.

• Mark purchased a home in 2006 and lived there for the past three years. He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.

For More Information, visit: http://www.federalhousingtaxcredit.com

$8,000 Tax credit extended and EXPANDED!

2009-11-04T20:08:00.000-08:00

The Senate today voted unanimously Wednesday night to extend the $8,000 tax credit for home buyers beyond its scheduled November 30, 2009 expiration date.

The credit would be available until April 30, 2010. Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home. The credit currently applies only to first time home buyer.

The Senate vote was 98 to 0

Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years. The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000.

Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively. Above those limits there are diminishing credits available.

The bill was passed as an amendment to legislation extending unemployment benefits. The House is expected to vote on the bill before the end of the week.

Bill Seeks Expansion of Home Buyer Tax Credit

2009-08-25T20:55:00.000-07:00

by Jann Swanson
If Congress enacts legislation currently in front of the House Ways and Means Committee, the current popular First Time Home Buyer Tax Credit will be extended beyond its current expiration date and greatly expanded.

HR 2801, Home Ownership Moves the Economy (HOME) Act of 2009, introduced by Howard Coble (R-NC) would continue the availability of the credit into 2010 and allow all home buyers to take advantage of the program. The credit is due to expire on December 1, 2009.

The current legislation grants a one-time credit of 10 percent of the home’s purchase price up to a maximum of $8000 to first time homebuyers or those buyers who have not owned a house in the last three years. Homebuyers can chose to claim the credit either retroactively on their 2008 return or on their 2009 obligation. If the buyer does not owe enough taxes to cover the credit the balance will be refunded to them in cash.

The full tax credit is available to U.S. citizens with incomes under $75,000 or $150,000 for couples filing jointly and a reduced credit applies to buyers with incomes up to $95,000 and $170,000.

Unlike an earlier housing stimulus program, the credit does not have to be repaid unless the homeowner sells the house in less than three years.

Congressman Coble’s legislation would remove both the income restriction and the requirement that the home be a first-time purchase.

There have been calls from a number of quarters, to extend the program to buyers who close on a house beyond the current December 1 deadline.

The National Association of Realtors and the National Association of Homebuilders among other credit the program at least in part with the recent rebound in housing sales.

The homebuilders group has been urging its members to lobby for just such a program as that proposed by the Home Act claiming that were the tax credit to be extended one year and made available to all home buyers it would increase home sales by 383,000 units and create nearly 350,000 jobs

Home Inventory is down again!

2009-04-22T12:19:00.000-07:00

INVENTORY IS ONLY 6 MONHTS

We found out last week that our current inventory supply for the Coachella Valley is at 6 months. This means that if no other properties were listed for sale, all homes for sale would be gone in 6 months.

Lending continues to get tougher. If you are preapproved now, you may not be down the road. Don't wait thinking prices will drop, you could lose out, and may end up paying more in your loan costs than what you would save in the price reduction of the home.

So if you are looking, now's the time. We are still seeing bank owned properties getting multiple offers. You need to be ready and act fast to get the home you want.

We are expecting to see an inflow of new properties over the next several months. So be ready. Call me today!

Learn how I can save you at least $5,000

on the purchase of your home, guaranteed!!!

Call Free 24-Hours a day

800-218-7889 Ext: 2016

P.S Call me today to set up your buyer consultation. Find out if now is the right time for you to buy! 760-464-8138

Making Home Affordable program may enable millions to refinance mortgages

2009-04-10T22:41:00.001-07:00

Borrowers hoping to refinance who do not have at least 20 percent equity in their homes may qualify for the Obama administration’s “Making Home Affordable” program. Through June 2010, borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac may be able to refinance for up to 105 percent of a home’s value.

Homeowners must be current on their mortgage payments and may qualify with credit scores as low as 620. Borrowers who do not meet the criteria for the refinance program may be eligible for another Obama administration plan that focuses on loan modifications.

For more information about the eligibility requirements and how the programs work, please visit www.makinghomeaffordable.gov

U.S. renters turn buyers as homes become affordable

2009-04-07T17:32:00.001-07:00

Record-low interest rates and favorable home prices have resulted in some first-time home buyers realizing that it costs the same or less to own a house as it would to rent a comparable place to live.

MAKING SENSE OF THE STORY FOR CONSUMERS

· According to an executive at John Burns Real Estate Consulting, out of the 76 metropolitan area markets across the U.S. tracked by the company, approximately 50 percent show that a person can buy a house for less than renting when considering the after-tax cost of homeownership.

· In some areas of California, especially in Riverside and San Bernardino counties, monthly mortgage payments on single-family detached homes are significantly lower than apartment rents.

· By most measures, affordability is at a record high. The NATIONAL ASSOCIATION OF REALTORS®’ housing affordability index rose 13.6 percentage points in January to 166.8; the highest since tracking began in 1970. The CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) First-time Buyer Housing Affordability Index stood at 59 percent in the fourth quarter of 2008, meaning that more than half of California households could afford to purchase an entry-level home in the state.

Mortgage rates drop to record low

2009-04-07T17:30:00.000-07:00

Rates on 30-year, fixed-rate mortgages averaged 4.85 percent for the week ending March 26, following an announcement by the Federal Reserve that it is launching a new effort to assist the U.S. housing market. The rate marked a record low in the history of the Freddie Mac survey. The previous low was 4.96 percent set during the week of Jan. 15.

C.A.R. launches mortgage protection plan for first-time home buyers

2009-04-07T17:29:00.000-07:00

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.

To qualify for the Mortgage Protection Program, applicants must:

· Be a first-time home buyer – someone who has not owned a home in three

or more years

· Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009

· Use a California REALTOR® in the transaction

· Purchase the property in California

· Be a W-2 employee (cannot be self-employed)

To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

Obama Unveils Homeowner Affordability

2009-03-04T18:47:00.000-08:00

President Obama unveiled his plan to help stabilize the housing market and keep millions of borrowers in their homes.

The Homeowner Affordability and Stability Plan includes two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. In addition, the plan includes a third initiative to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac.

Many of the plan’s details are still being worked out and will not be announced until March 4, here is an overview of the plan’s main components.

Refinancing Initiative
Under current rules, those families who own less than 20% equity in their homes have a difficult time refinancing and taking advantage of the historically low interest rates. Therefore, the refinancing initiative in the new plan provides refinancing help for homeowners with less than 20% equity in their homes or who owe more than their home is worth. This initiative is open to homeowners who have conforming loans which are guaranteed by Fannie Mae and Freddie Mac, and who owe up to 5% more than their home is worth.

According to the plan, “credit-worthy” or “responsible” homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The refinanced loan, however, cannot include prepayment penalties or balloon payments. For many families, this low-cost refinancing may help reduce their mortgage payments by up to thousands of dollars per year.

As with the rest of the plan, details about this initiative will be released at a future date—including what, if any, credit score requirements will be included.

Stability Initiative
This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures and stabilize home prices. It is intended to help homeowners who are struggling to afford their mortgage payments, but cannot sell their homes because prices have fallen significantly.

The goal of this initiative is simple: “reduce the amount homeowners owe per month to sustainable levels.” To accomplish this, lenders are encouraged to lower homeowners' payments to 31 percent of their income by lowering their interest rate to as low as 2% or by extending the terms of the loan. In addition, lenders can also lower the principal owed by the borrower, with Treasury sharing in the costs.

Homeowners who are current on their mortgages but are struggling can still apply for this program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.

Since the focus of this initiative is on helping families and neighborhoods, investment properties do not qualify. This initiative also includes a number of additional elements and incentives that benefit homeowners and lenders alike, including:

Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
Supporting Low Mortgage Rates
As part of the Homeowner Affordability and Stability Plan, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability. This portion of the plan will use using funds already authorized in 2008 by Congress for this purpose.

The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.

Again, the government plans to unveil the final details of the plan on March 4, 2009

You waited for prices to come down, now you can't get the loan anymore

2009-03-04T18:44:00.000-08:00

I am getting calls and emails left and right from clients I have been working with for the year. They wanted to wait until prices fell, which they did, so they call me to start looking. I tell them to call their lender to make sure they are still get a long. Guess what, they can't.

FHA has increased the minimum middle FICO score for borrower and co-borrowers from 580 to 620. In fact plans to increase the minimum to 660 in the next few months is already in process!

Yes prices are still dropping, but with our national credit crisis, can you afford to wait? Email me with your thoughts

U.S. housing market bottom within sight

2009-02-12T17:32:00.001-08:00

Although some housing markets across the nation have experienced price declines of 50 percent or more from their peaks, namely in high-cost states such as Florida and California, it appears a bottom is in sight. According to a report from Moody’s Economy.com, the bottom, in terms of home prices, will likely take place in the fourth quarter.

MAKING SENSE OF THE STORY FOR CONSUMERS

· The report states that nearly 62 percent of the nation’s 381 metropolitan areas will have experienced double-digit-percent declines in home prices, peak-to-trough, before bottoming out.

· Housing inventories are falling, sales are rising, and home prices are becoming better aligned with incomes, which will help lead to a housing correction. Although lawmakers are working on plans to help stabilize the market, the report forecasts that even with further government intervention, the recession will keep the housing market from fully recovering until the end of the year.

· According to the report, home sales will have declined by 40 percent and housing starts by 70 percent nationwide from peak to trough. However, California’s home sales tell a different story. C.A.R. economists project sales for 2009 to increase 12.5 percent to 445,000 units, compared with 395,600 units (projected) in 2008.

FANNIE, FREDDIE EXTEND EVICTION SUSPENSION THROUGH FEB. 28

2009-02-09T20:26:00.003-08:00

Fannie Mae announced Friday it will extend its suspension of evictions from Fannie Mae-owned single-family properties through Feb. 28. The suspension applies to all single-family properties, including owner-occupied properties that have been foreclosed upon as well as foreclosed properties occupied by renters. Freddie Mac also issued a similar announcement suspending evictions through Feb. 28.

The company this month began implementing its National Real Estate Owned (REO) Rental Policy that allows qualified renters in Fannie Mae-owned foreclosed properties to stay in their homes. The new policy applies to renters occupying any type of single-family foreclosed properties at the time Fannie Mae acquires the property. Eligible renters will be offered a new month-to-month lease with Fannie Mae or financial assistance for their transition to new housing should they choose to vacate the property. The properties must meet state laws and local code requirements for a rental property. Property managers are contacting renters in Fannie Mae-owned foreclosed properties on behalf of Fannie Mae to notify them of their options. Renters in Fannie Mae-owned properties can call (800) 7-FANNIE for further information about their options.

What will it take to get you to buy a house?

2009-02-09T20:26:00.001-08:00

Fixed-rate mortgages of three percent, zero-down payment requirements, and a 10 percent break on the market value of the house appear to be what many “on the fence” home buyers are waiting for before they consider purchasing a home.

MAKING SENSE OF THE STORY FOR CONSUMERS

· According to a study of more than 700 self-described “on-the-fence” buyers, 44 percent responded that they haven’t yet committed to purchasing a home because they are waiting for lower mortgage rates. The study, conducted by the National Association of Home Builders’ research subsidiary, found that 41 percent of undecided buyers are unsure if they could qualify for financing. Another 38 percent reported they expect to see home prices decline further.

· The study found that concerns about declining property values were most prevalent among home buyers in the Western region, while buyers in the Northeastern and Midwestern states were more concerned with lower mortgage interest rates. Buyers in the South expressed uneasiness over their ability to qualify for a new mortgage.

· Of the potential home buyers surveyed, the mortgage rate that seemed most favorable and would be most effective in persuading consumers to buy now is a 30-year, fixed-rate mortgage at 3 percent. According to Freddie Mac, interest rates on 30-year, fixed-rate mortgages averaged 5.25 percent for the week ending Feb. 5.

· Survey respondents said guarantees by home builders that their loan applications would be accepted with verifiable proof of income and a “fair” credit score ranked six times more effective than standard application procedures.

· Price concessions, such as a 10-percent discount below market value, appeared to be the most compelling option for on-the-fence buyers.

Fed adopts program to stem foreclosures

2009-02-09T20:24:00.000-08:00

The Federal Reserve recently announced it will seek to renegotiate mortgages it owns that might otherwise enter foreclosure, according to Federal Reserve Chairman Ben S. Bernanke. Under the program, the Fed could reduce what a homeowner owes on a mortgage; lower the interest rate; lengthen the term of a loan; or take other steps to prevent a loan from defaulting.

The Federal Reserve’s program will focus on reducing the amount of principal owed by those at risk of foreclosure, especially those with loan balances exceeding 125 percent of the estimated value of their property.

It is unclear how many homeowners could benefit from the program, and most individual borrowers will likely not know if their mortgages are owned by the Federal Reserve. If eligible for a loan modification, the homeowner would work with mortgage servicer and not the government directly

Homes Sales are up, inventory is down!!!!!

2009-01-26T19:41:00.000-08:00

Visit msnbc.com for Breaking News, World News, and News about the Economy

IndyMac Bank sold to private investor group

2009-01-11T20:19:00.000-08:00

group of private investors from New York have agreed to purchase IndyMac Federal Bank from the Federal Deposit Insurance Corp. (FDIC) for approximately $13.9 billion. The investment group and IMB Management Holdings, a New York-based partnership, will inject about $1.3 billion in new capital into the bank and form a new holding company that will own and operate it under a thrift charter. The buyers of IndyMac will share losses with the FDIC and will assume the first 20 percent of losses, with the FDIC absorbing the remaining losses

http://www.latimes.com/business/la-fi-indymac3-2009jan03,0,7974615.story

Understanding What Causes Interest Rate Movement

2009-01-11T20:15:00.000-08:00

Recently, Title people, Radio commercials and TV news reporters have quoted interest rates that are not what the end consumer gets! This is very frustrating for a Loan Officer! Remember, first of all, that FICO scores, loan amounts and other factors determine a buyer's interest rate when purchasing a house! Not everyone gets or deserves the same rate! Even Realtors sometimes quote rates to a buyer that are not accurate. When a Loan Officer quotes rates higher than what all these "so-called experts" are quoting - buyers think they're getting ripped off. So please allow the Loan Officers who deal with these rates daily advise the buyer's the rate they have earned. What one reads from articles or what they have heard from the electronic media is not necessarily correct!

The following article accurately explains how

interest rates for home purchases are determined!© Copyright 2009. All About News, Inc.

Consumers are often misled when it comes to the subject of the Federal Reserve and how it affects mortgage interest rates. Often the media is the culprit causing the confusion. In the last few years, the Fed has taken action that caused mortgage interest rates to move in a direction other than what consumers expected, because the media provided weak reporting on the subject.

The Federal Reserve affects short-term interest rate maturities, the Fed Funds rate, and the Overnight Lending rate. These factors have a direct impact on the Prime rate. If you took only this into consideration, you may mistakenly conclude that changes made by the Fed will cause a similar movement in mortgage interest rates. However, mortgage interest rates are dictated by the trading of mortgage-backed securities, which trade on a daily basis. The real dynamic at the heart of interest rate movement is the relationship between stocks and bonds.

Stocks and bonds compete for the same investment dollar on a daily basis. There is literally only so much money to be invested. When the Federal Reserve feels that interest rates need to be decreased in an effort to stimulate the economy, this reduction in rates can often cause a stock market rally. When the market becomes bullish, the money to invest in stocks comes from the selling of mortgage-backed securities.

Unfortunately, selling mortgage-backed securities to fuel stock market rallies causes interest rates to go up, not down.

Historically, there have been many times when the Federal Reserve has increased interest rates. Stocks then sell off in fear that the increase will affect corporate profit margins, and the liquidated stock assets need a place to park until the next rally comes along. The safe haven is found in mortgage-backed securities which cause mortgage rates to drop.

The daily ebb and flow of money is what matters most when it comes to the movement of mortgage interest rates. I make it a point to continuously monitor interest rates for my clients, and advise them of opportunities to manage their mortgage debt at a better rate.

Fannie Mae and Freddie Mac Change the Appraisal Process

2009-01-11T20:11:00.000-08:00

Freddie Mac and Fannie Mae will implement a revised Home Valuation Code of Conduct beginning May 1, 2009. In an attempt to increase the reliability of appraisals, the revised code builds on existing seller-servicer guidelines and will apply to lenders that sell single-family mortgage loans to Fannie Mae and Freddie Mac.

One major difference in the code is that lenders will be required to order appraisals from one central clearing house, which will in turn select an appraiser. The down side of such a process is that lenders will have little to no communication with the appraiser, which means there won't be an opportunity to have a discussion or touch base with appraisers before they go out to appraise the house. The new code is intended to help assure that borrowers, home buyers and secondary mortgage market investors receive fair and independent property valuations.

In some areas, lenders have already implemented these changes, and in the next few weeks and months, more will have to begin the process.

Mortgage rates fall to new low

2009-01-04T22:49:00.002-08:00

The average rate on a 30-year, fixed-rate mortgage dropped to 5.14 percent last week to a new record low, according to Freddie Mac. A year ago, the rate was 6.17 percent for a comparable loan. As a result, mortgage applications last week jumped to the highest level in five years, with more than 80 percent of the applications for refinancings. There also was an 11 percent increase in applications for home purchase loans.

To read the full story, please click here:

http://www.washingtonpost.com/wp-dyn/content/article/2008/12/24/AR2008122401371.html

More lenders allow “early workout” loan alterations

2009-01-04T22:49:00.001-08:00

Borrowers with loans owned by Fannie Mae no longer have to be behind in payments in order to qualify for a loan modification. Borrowers facing financial difficulty, such as losing a source of income, now can apply for an “early workout” loan alteration. Under Fannie Mae’s program, borrowers who qualify will enter into a trial period of reduced payments, usually for four months. If the reduced payments are made on time each month during the trial period, the modified mortgage terms may become permanent.

To read the full story, please click here:

http://www.latimes.com/business/la-fi-harney21-2008dec21,0,5965944.story

REO LENDER CANNOT REQUIRE BUYER TO PURCHASE TITLE INSURANCE FROM ANY PARTICULAR COMPANY

2009-01-04T22:47:00.000-08:00

No seller can require that the buyer purchase title insurance from any particular title insurance company. This rule pertains to transactions involving a federally-related mortgage loan for one-to-four residential units as defined under the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. section 2608). Although this is a well-established rule under RESPA, it bears repeating given the recent upsurge in REO transactions.

REO transactions are not exempt from RESPA requirements. If an REO lender chooses the title insurance company, as is often the case, it cannot require directly or indirectly, as a condition to selling the property, that the buyer purchase the title insurance policy. An REO lender that violates this RESPA requirement can be, among other things, held liable to the buyer in the amount equal to three times all charges made for such title insurance. Moreover, anyone who believes that RESPA has been violated may file a complaint (and may request confidentiality) to the U.S. Department of Housing and Urban Development (HUD).

The Current Financial crisis in "layman's" terms!

2008-12-31T20:03:00.000-08:00

The crisis in the financial markets seems to be the top story on every news channel. But many of the reporters and so-called pundits don't understand what really happened...and what may happen next. I'm pleased to share with you a short video and article that were created to put an end to the confusion once and for all! In these easy-to-understand resources, Barry Habib, Founder of the Mortgage Market Guide and Chairman of the Board for Mortgage Success Source, explains in layman's terms exactly what caused the current financial crisis - and what to be watching for in the near future.

Please take a moment to access these resources here...the few minutes you spend will open your
eyes to what very few "experts" truly understand.

Time Magazine Recession Times Covers

2008-12-31T19:58:00.000-08:00

I came across this blog and found this to be a great post. Check it out

Riding the Ups and Downs Over Time
http://www.realprodemo.com/Blog

Housing market displays a hint of stability

2008-12-24T19:18:00.000-08:00

Check it out. Buyers, its time to buy or you are going to miss out.

http://www.mydesert.com/article/20081224/BUSINESS04/812240310

California Market Report and Analysis

2008-12-23T21:16:00.000-08:00

Click on image to enlarge

How long will this current recession last? No one knows for sure. We take a look at past recessions for clues!

Happy Holidays

2008-12-23T10:04:00.000-08:00

Send your own ElfYourself eCards

Mortgage Update from Bret Cohen

2008-12-19T19:50:00.000-08:00

This sure is an interesting time in the Lending and real estate Business. All of the recent volatility has made our jobs much more difficult. Mortgage Interest rates used to change every day, now we have two or three re-prices each day. The government’s efforts to step in and ease the foreclosure problems we are facing has changed lending guidelines also almost on a daily basis. I have attached some bullet points that explain some important changes / opportunities that now exist in our ever-changing landscape….

· FHA’s minimum down payment is being increased from 3% to 3.5% as of Jan 1, 2009. The only way to honor the 3% down payment option for your client, is to get their loan approved before the end of the year. So, if you don’t already have an approved offer and a loan submitted, then you should be notifying your clients about the change.

· FHA’s new Loan Limit for Riverside County is $355,350, not $500,000. This is also in effect on January 1, 2009, and under the same scenario as above.

· Conventional Loan limits have also been reduced back to $417,000, not $500,000 anymore. Any loan amount above 417K, is going to be considered a jumbo mortgage.

· Reverse Mortgages are going to be a great mortgage tool moving forward to help seniors over the age of 62 purchase a new home, with no income or credit qualification required. Yes, you heard that here first.

· Rates have been great all week. Now is a great time to look into doing a refinance to lock into a low fixed rate.

· USDA & VA Loan’s – both offer your clients 100% financing as long as they qualify for the program.

· 203(k) FHA remodel home loan – This program will allow your clients to include in the loan the cost of improvements the home will need to make it complete. This program requires only 3.5% down, and works on owner occupied properties only. Max loan $355,350.

· Fannie/Freddie’s Homestyle Loans – this program works very similar to the above program, which allows you to include the cost of the home improvements in the loan, except that it works for all occupancy types. Primary, Second Homes, and Inv. Properties. Loan amount goes to $417,000, and down payments vary based on occupancy.

If you would like more information on any of these topics, or have any other questions, please feel free to contact me, your loan professional.

Your Mortgage Consultant,

Bret A. Cohn
Franklin Loan Center
Phone: (760) 779-8136
Fax: 760-779-8113
Cell: (760) 238-2232
bcohn@franklinlc.com
www.franklinloancenter.com/bcohn

Home buyers look for their own bailout with a 4.5% mortgage rate

2008-12-19T19:48:00.000-08:00

After hearing news that the U.S. Treasury Dept. is working on a plan that could reduce interest rates to as low as 4.5 percent, many consumers were reluctant to complete their applications for new mortgages, thinking they may receive a better rate in a few weeks. Consumers worried about missing out on a low rate can ask their broker or loan officer to lock in today’s rate with the stipulation that they can receive a lower rate should one become available within 60 days. Some brokers offer 60-day locks with that option, while others may charge a fee

Read full Story...Click Here

Home buyers look for their own bailout with a 4.5% mortgage rate

2008-12-19T19:46:00.000-08:00

FANNIE MAE STREAMLINED MODIFICATION PROGRAM ANNOUNCED

2008-12-19T19:44:00.000-08:00

Fannie Mae announced a series of actions designed to help borrowers and loan servicers address potential mortgage problems and prevent unnecessary home foreclosures among the more than 18 million single-family loans owned or guaranteed by Fannie Mae. The latest actions are meant to reach borrowers earlier with foreclosure prevention options, and include new servicer guidance;
an early workout program; longer forbearance and repayment plan periods; and new and amended mortgage-backed security trust documents.

Read full story

click here

Mortgage Update

2008-12-08T18:36:00.001-08:00

There is a lot of Mortgage news today. Particularly the news that the ” The Treasury Department is strongly considering a plan to intervene directly in the mortgage industry to dramatically force down rates and stimulate the housing market.” As usual there is a lot of excitement and speculation and very few details available. I have attached a couple of articles that explain the ideas that are being examined.

http://www.mortgagenewsdaily.com/12042008_Mortgage_Rates.asp

http://www.msnbc.msn.com/id/28045659

Unfortunately, there is a lot of marketing and Grandstanding going on out there, and not a lot of educating. Yes Mortgage rates are low from a historical perspective, however, there are a lot of guidelines that must be met in order to qualify for the best terms. In fact, rates have actually gone up on many conforming loans due to new “Risk Based Pricing Adjustments”… Though you probably won’t see any headlines with that information.. And now more than ever, the property is being scrutinized as well.

Anyone can throw out a super low rate quote without learning about a clients qualifications. A professional talks specifically about the clients goals and options.

NAR's Four-Point Plan

2008-12-02T19:56:00.000-08:00

NAR has submitted their economic stimulus measures plan to our elected officials.

Here's their plan:

Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit's limited availability and repayment requirement severely limit the credit's use and effectiveness.

Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.

Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.

Permanently bar banks from engaging in real estate brokerage and management. The banks have proved they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases

Let me kmow your thoughts on how this may or may not help you.

Fannie Mae, Freddie Mac suspending foreclosures

2008-11-24T18:58:00.000-08:00

Just wanted to make sure you did not miss today’s big news. As with all braking news regarding the housing market, we will need to wait to see what details emerge, however this will be welcome news to the millions of homeowners, some of which are our family and friends, who were worried that they would lose their homes to foreclosure this holiday season

http://money.cnn.com/2008/11/20/real_estate/Fannie_suspends_foreclosures/index.htm?postversion=2008112018
I can help with your loan modification or short sale. Call or email me with any questions

Forecast for the Week

2008-11-24T18:55:00.000-08:00

It will be a holiday shortened week in the markets as Thanksgiving is celebrated, but there are several important reports that could determine which direction Bonds and home loan rates move. On Tuesday, the Gross Domestic Product (GDP) Report will be released, and on Wednesday we will get the details on the Fed's favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) data, from the Personal Income report. Given the Fed's recent talk of deflation, it will be important to see what these reports reveal.

Also on Wednesday, we'll get a read on consumer and business consumption and buying behavior from the Durable Goods Report. Durable goods are items that are non-disposable, like cars, furniture, appliances, games, cameras, business equipment, etc. In addition, we'll get a read on the housing market with Monday's Existing Home Sales Report and Wednesday's New Home Sales Report.

Stocks hit some important technical support last week, and bounced higher on Friday, with the rally being boosted by the appointment of incoming Treasury Secretary Timothy Geitner. Some follow through to the upside in Stocks could pull money out of Bonds and cause some short term worsening of home loan rates...but if deflation starts grabbing more headlines, smart money will be headed towards Bonds, which will help home loan rates improve.

Keep an eye out for words from SEC Chairman Chris Cox, who must comment on some potential easing to "mark-to-market" accounting before January 2nd. If there is indeed some easing in mark-to-market accounting - which accelerated the financial crisis - it could set off a significant...perhaps very significant...rally in Stocks, which may temporarily hurt Bonds and home loan rates.

The Bond market will be closed on Thursday in honor of Thanksgiving, and will also be closing early at 2:00pm ET on both Wednesday and Friday. I wish you and your family a very happy Thanksgiving!

Want to buy a foreclosed home - Tips

2008-11-16T20:55:00.000-08:00

Even though foreclosures are on the rise in some areas, many properties in favorable locations are attracting numerous offers. Some economists recommend that home buyers who are seeking a bargain price on a foreclosed home take the “time on market” into consideration. Foreclosureradar.com says that if a foreclosed home has been on the market for several weeks, then it is likely overpriced. According to Foreclosureradar.com, banks may be more willing to accept a low offer to remove the loan from their books, especially at the end of a quarter. Home buyers should work with their REALTOR® to craft a realistic offer.

Many banks selling foreclosed homes follow a formula enabling the bank to entertain low offers only after the house doesn’t sell for a specified period of time. Home buyers who find an attractively priced foreclosed home in a favorable area often are advised to make an offer close to the list price or offer a quick escrow. Sometimes banks will accept a quick escrow over an offer with a slightly higher price. If the property is in an especially desirable neighborhood, it may be necessary to offer both a strong price and a quick escrow

The best time to buy a home

2008-11-16T20:45:00.000-08:00

Despite rising foreclosures, delinquencies, and unemployment rates, and declining home prices, sales of new and existing homes are improving, which is causing some home buyers to try to “time the market.” Many housing analysts advise potential home buyers not to base their homebuying decision on economic reports, but rather to take their time finding the right house and to focus on getting their financing in place.

Most economists believe that home prices will continue to decline during 2009. C.A.R. predicts that the median home price in California will decline an additional 6 percent next year. Home buyers need to remember that real estate markets are local and prices differ neighborhood to neighborhood. Many REALTORS® advise their clients to visit communities that interest them, and to talk to homeowners, business owners, and financial institutions to become familiar with the area.

Credit restrictions and loan underwriting standards tightened during the credit crunch, resulting in mortgage loans taking longer to process and fund. Most lenders are requiring more information about income, assets, and expenses than in previous years, so home buyers are advised to get preapproved for their mortgage loan instead of applying once they have identified their ideal home.

Great Home in Desert Hot Springs

2008-11-09T19:47:00.000-08:00

Weekly Palm Springs Real Estate Update

2008-11-09T19:18:00.000-08:00

Deep discounts on foreclosures and low interest rates continue to motivate first-time buyers, seasonal buyers and investors into taking action.

Recent stats show sales of existing homes across the desert rose 135.3% from the year before, and resales in September were up 17.4% from August, according to the California Assn. of Realtors. The median home price reached $199,810 last month, creating a flurry of Real Estate activity reminiscent of the big housing boom a few short years ago.

We also had some positive news from Canada, after a steep drop of the Canadian dollar last week; it started making its comeback by the second part of the week. We are expecting the dollar to rise even more by the beginning of this week and start stabilizing by next week until January.

With that said the month of November is also the start of the season here in the desert. Snowbirds are returning, the golf communities are opening their freshly seeded courses and the temperatures have dropped into the eighty’s. This also means more housing inventory to choose from.

To have direct access to these properties: http://www.SearchPalmSpringsHomes.com

If you are considering the sale of your home you can receive an e-mail analysis that will give you a good indication of your homes current market value at http://wwwSearchPalmSpringsHomes.com.

Are you behind in your mortgage, you have options, check out http://www.StopmyDesertForeclosure.com

I would like to encourage everyone who has been considering a Real Estate acquisition to do so while this incredible buyer's market opportunity is at hand. Now is the time to get a hot deal that can quite possibly secure your financial future.

I am back!

2008-11-09T17:32:00.000-08:00

Hi Everyone!

Sorry it’s been so long since my last post. I have been very busy with training and seminars. I am now a short sale specialist working with sellers.

I work with sellers to help them through the entire process. For homeowners who want to stay in their home, I am working with National Mortgage Counseling service to help them work with their lender to work a loan modification. So far this month we have saved 3 homeowners from foreclosure.

My goal is to save 100 homes during 2009. I have had several agents ask why I bother to help homeowners stay in their home, you don’t make any money. I respond by telling them, it not just about the money for me. I am in the real estate business to help people, whether I make money or not, is not my goal. The 2nd reason for helping, if I can save 100 homes over the next year, that’s 100 less homes on the market….in turn reducing our inventory.

My next goal is to work with banks and help them sell their foreclosed homes I am learning everything I can and working on getting REO listings in the Palm Springs area. I am working to get listed with at least 5 banks over the next t 6 months. Don’t believe the hype that the foreclosure market is almost over. Over the next 24 months we will start seeing more of the higher priced homes falling into default.

If you have any real estate questions please do not hesitate to call or email me. I am here to help however and whenever I can . Until next, Laura Lake, signing off!

FED ANNOUNCES PLAN TO PURCHASE EQUITY STAKES IN BANKS AND THRIFTS

2008-10-17T17:27:00.000-07:00

The federal government on Tuesday announced the launch of a new program designed to assist with ongoing efforts to help stabilize the U.S. banking system and restore confidence in the country's financial markets, as well as those abroad. So far, nine of the nation's largest banks have agreed to participate in the program, which will allow the government to inject $250 billion into the country's financial institutions in exchange for mandatory preferred stock shares for taxpayers and limited pay for company executives.

The Fed's plan will provide money to banks at a fairly low cost for five years to help unfreeze the nation's credit markets, which have been faltering under bad debt tied to the mortgage lending sector. In announcing the plan, the Fed made it clear: this was not a preferred action, but a necessary one.

"Government owning a stake in any private U.S. company is objectionable to most Americans -- me included," said U.S. Treasury Secretary Henry Paulson announcing the plan Tuesday. "Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable. When financing isn't available, consumers and businesses shrink their spending, which leads to businesses cutting jobs and even closing up shop."

In exchange for funding, the federal government will receive preferred, nonvoting shares in participating banks, which now include, Citigroup, Wells Fargo and Bank of America, with fixed dividends of 5 percent for five years, increasing to 9 percent afterward. In addition, the plan also calls upon lenders to ramp up efforts to stave off foreclosures by working with borrowers to either refinance or restructure loans that will allow them to keep their homes, wherever possible.

"We expect all participating banks to continue and to strengthen their efforts to help struggling homeowners who can afford their homes avoid foreclosure," Paulson said. "Foreclosures not only hurt the families who lose their homes, they hurt neighborhoods, communities and our economy as a whole."

PGA West - La Quinta

2008-09-29T21:11:00.000-07:00

Last Ditch Effort to Save First Time Buyer Program

2008-09-14T17:05:00.001-07:00

From Inman News...9/9/2008
STOCKTON, Calif. -- A last-ditch effort to head off an Oct. 1 ban on the use of seller-funded down-payment assistance with FHA-backed loans is picking up steam as a compromise bill, that would mend rather than end the practice, gains momentum.
HR 6694, which would allow home builders to continue funneling down-payment assistance through nonprofit groups to home buyers using FHA loans, is certain to pass the House of Representatives and has the blessing of the Department of Housing and Urban Development, Rep. Barney Frank, D-Mass., said at a hearing on foreclosures this weekend.
The influential chairman of the House Financial Services Committee urged those attending a committee field hearing in Stockton Saturday to lobby the Senate -- which shoehorned language banning seller-funded gifts into HR 3221, the sweeping housing bill signed into law July 30 -- in support of the bill.
HR 6694 would automatically allow qualified borrowers with credit scores of 680 or above to use seller-funded down-payment assistance on FHA-backed loans, Frank said. Borrowers with scores between 620-680 who relied on seller-funded gifts might be subject to higher insurance premium fees.
Borrowers with scores below 620 would be excluded from using down-payment assistance until mid-2009, when HUD would be permitted to expand the program to include them if the Secretary of Housing determined it could be done without putting a dent in FHA's insurance requiring taxpayer subsidies.
HUD has sought to end the use of seller-funded down-payment assistance with FHA loans outright, claiming the practice artificially inflates home prices and that borrowers who relied on the gifts are more likely to default.
Although FHA loan guarantee programs have always been self-sustaining -- they are funded by premiums paid by borrowers, and not taxpayers -- HUD said the enormous growth in the use of seller-funded gifts and the poor performance of the loans threatens to put the insurance fund in the red.
Nonprofits that funnel payments from home builders to lenders to help borrowers meet minimum down-payment requirements on FHA loans dispute HUD's claims and have filed lawsuits that delayed HUD's implementation of a rule change banning the practice (see story). But the passage of HR 3221 made those court challenges moot.
Home builders -- many of whom relied on seller-funded gifts to close 20 percent to 30 percent of their sales in the second quarter -- have been bracing for the end of the program, and some lenders have already stopped processing such loans.
Frank said the bill that would give seller-funded gifts a reprieve, HR 6694, has the support of HUD Secretary Steve Preston because it also addresses an issue near and dear to the department's heart -- risk-based pricing.
In an effort to make FHA's loan guarantee programs operate more like private mortgage insurance, HUD on July 14 began giving borrowers with good credit a break on their upfront insurance premiums, while charging those with spotty credit more (see story).
Opponents of risk-based pricing maintain it places an unfair burden on low-income borrowers who rely on FHA loan guarantee programs. The Senate inserted a one-year moratorium on the use of risk-based pricing into HR 3221, which begins Oct. 1 and ends Sept. 30, 2009.
Under risk-based pricing, the upfront premium for FHA mortgage insurance ranges from 1.25 percent to 2.25 percent, depending on credit score. When the moratorium on risk-based pricing takes effect Oct. 1, FHA will begin charging all borrowers an upfront premium of 1.75 percent. Before the introduction of risk-based pricing in July, FHA had charged all borrowers a flat 1.5 percent upfront premium. In returning to a one-size fits all pricing structure, HUD said it was forced to raise premiums for all borrowers by 25 basis points to keep the program self-sustaining.
HR 6694 would allow HUD to continue risk-based pricing for borrowers with lower credit or FICO scores, but mandate refunds of some or all of the additional premiums paid if borrowers make timely payments.
HR 3221 had no provisions banning seller-funded gifts or risk-based pricing until it got to the Senate, Frank said, recounting the intense debate that took place around the massive housing bill. The bill's most hotly debated provision was a $300 billion expansion of FHA loan guarantee programs to help troubled borrowers refinance into more affordable loans (see story).
"The FHA loved the ban on down-payment assistance (but) hated the ban on risk-based pricing," Frank said at Saturday's hearing. "That seemed to me to offer an opportunity. So (HR 6694) will replace both bans with middle ground -- and it will pass the House, I can guarantee you. What you want to do now obviously is talk to your senators. We think it will go through there -- it has the approval now of the Secretary of HUD."
A HUD spokesman said he could not confirm that Preston supports HR 6694, and that HUD is still reviewing the bill.
"We understand that Congress is working on legislation related to seller-funded down-payment assistance, but our primary focus is on implementing the recently passed housing bill," the spokesman, Lemar Wooley, said in an e-mail. "Throughout this process, our number one priority is to ensure FHA's insurance fund remains sound and does not require taxpayer dollars."
At Saturday's hearing, Merced Mayor Ellie Wooten said the down-payment assistance program offered by Nehemiah Corp. of America was "heavily used" in Merced County.
"We are an agricultural community, and (farmworkers) are solid people, but many people don't have bank accounts with the 20 percent down payment," Wooten said. The minimum down payment for FHA guaranteed loans is now 3 percent, and is being raised to 3.5 percent on Oct. 1.
Wooten, a Realtor, said the Nehemiah program helped many borrowers get into homes, and "they made their payments and there was no monkey business. When the Nehemiah program was (banned), it knocked out quite a few very good qualified buyers. It has hurt us."
Democrat U.S. Rep. Dennis Cardoza, a former Realtor who represents Merced, Modesto and Stockton, also said down-payment assistance programs are "critical" in the region. "We have low-income folks who still have the ability to pay but don't have the ability to bring large down payments. When I was a Realtor, I had hundreds of folks tell me that's how they got into their house."
If Congress does take action to preserve FHA's ability to accept seller-funded down-payment assistance, it would have to move quickly. Although the ban mandated by HR 3221 doesn't take effect until Oct. 1, builders like Lennar Corp. have set a Sept. 23 deadline for loan applications involving seller-funded gifts.
Nehemiah President and CEO Scott Syphax, who also attended the hearing, said he believes HR 6694 -- currently awaiting a hearing in Frank's Financial Services Committee -- can emerge from the House and Senate in time to beat the deadline.
In a telephone interview before the hearing, Syphax said there's been a grassroots effort to preserve down-payment assistance programs.
"What's happened with this is the people have taken this over from us," Syphax said. "We are not in control at this point. Across the country, folks are forming groups on their own, making their own fliers. These are everybody from homeowners who have received a benefit, to people working in the real estate space. They are the ones turning this around -- it's not us."
Nehemiah and other supporters of down-payment assistance programs, including the National Association of Mortgage Brokers, the National Association of Black Mortgage Brokers and the National Urban League are planning a rally in Washington, D.C., on Wednesday 9/10

Buyers Frustrations

2008-09-01T21:41:00.001-07:00

I wanted to post about the current situation of several buyers that I am currently working with. We’ve been looking at properties for well over a month.

What my buyers are learning is that while there are still plenty of inventory, only about 30% is good inventory. What do I mean by good inventory? Homes that are in good condition and are priced to sell.

My buyers are becoming frustrated with the fact that when we come across a home that’s in good shape, meets their wants and needs and is in their price range, we put in our offer only to compete against multiple offers, many times with “all-cash” offers.

Two of my buyers are using the NEHEMIAH down payment assistance program, which means they need to be in escrow by September 5th. This program will end on October 5th, so we need to close before that date in order to take advantage of the seller down payment assistance. Talk about a time crunch.

Inventory is still dropping

2008-09-01T21:38:00.000-07:00

With summer coming to an end, it means the “season” is upon us and I truly expect that the returning “snowbirds’ and additional investors will be rushing to buy up the remaining “great deal” properties.

We are currently at a 2w year low with our inventory and our average day on market has dropped from 115 days to 85 days. So more homes are selling and they are selling faster.

The Numbers are in

2008-08-21T17:04:00.000-07:00

Good news for the Palm Springs Area.

The last 8 months here in the desert have been amazing for Home buyers. We have seen a signeficant drop in inventory.

This means we are getting closer to the bottom of the market for the Palm Springs Area.

Our housing inventory is at a 2 year low and the average days on the market has dropped from 115 days to 85 days.

Get in on all the deals, call me today

Laura lake 760-464-8138

Why is my escrow taking so long

2008-08-05T21:54:00.000-07:00

By Bret Cohn: Anyone who has tried to purchase a short-sale, foreclosure, or get an FHA loan lately probably noticed that while all 3 can be an incredible “deal”, Banks are taking 45-90 days to close in comparison to the traditional 30 day escrow. There are several reasons for this and I thought people might like to know what the problem is.

When it comes to the short-sales and Foreclosures, it is not uncommon here in the valley for it to take well over a month to get an accepted offer. You see the banks are overwhelmed with mortgage holders who can no longer afford their payment and are looking to either sell their property for less than they owe (Short-Sale) or just give it back to the bank. Despite the credit crunch and the fact that it is common knowledge that this has been happening for a year now, the banks where not adequately staffed to handle the influx of short-sale requests and foreclosed properties, so to get acceptance of an offer is taking for ever.

The banks are trying to recoup some of their loses by writing the new loans on the properties they own. The problem with this is there are fewer and fewer loan programs that allow anything other than full documentation of income and assets and the staffing levels in the Loan departments have also been cut severely. These loan originators do not have the expertise to deal with the influx of new business in this new world and buyers are getting frustrated.When it comes to FHA loans it is even worse because these have been out of vogue for the last 5+ years.

The sub-prime loans and 100% financing loans (that got us into this mess) more or less replaced the FHA programs and the Banks and their employees are not up to speed on how to do these loans or staffed to handle all of the new requests they are receiving because many banks insist that a perspective buyer be pre-qualified by the original lender.I have heard story after story of how the banks are pushing perspective buyers of their short sales and foreclosures to use them as the lender only to have the buyer get terrible service and little attention form the lender’s loan originators.

Don’t even get me started on the “per-diems” they want you to pay after they take forever getting you the necessery paperwork to close the deal !!! If you have any interest in Buying a short-sale or Bank owned Property or are looking to get an FHA loan let me know. I have a great FHA Approved lender and I am also expereinced with working with the banks on short sales and foreclosed homes.

For Mortgage help contact:
Bret A. Cohn - Franklin Loan CenterPhone: (760) 779-8136Cell: (760) 238-2232bcohn@franklinlc.com

For help with your Real Estate questions contact: Laura Lake – Keller Williams Realty760-464-8138lauralake@kw.com www.SearchPalmSpringsHomes.com

Palm Springs Sold Inventory is up, Listing inventory is down

2008-08-01T21:57:00.001-07:00

Well, for those of you who wanted to wait until our market bottomed out, you may have missed out.

Since April, 2008, sales have increased and our inventory is continuging to shrink.

Sales

April 08: 690 -April 07: 642

May 08: 692 - May 07: 659

June 08: 638 -June 07: 593

July 08: 602 - July 08: 493

As you can see, we are having our best summer in sales. Summer tends to be our slower months, so what are we in for come Fall......?

I beleive that interest rates will stay put until aroud the end of this year and then we will see another spike.

There are alot of great deals on homes, but the homes in good shape and priced well move fast. I just saw a brand new home, never lived in, 3bed 2 bath, in the Foxstone Develoment in North Indio, listed for about $175,000, on the market for 18 days and there was an offer accepted today. If you are not on my Red Carpet Buyer list, send me an email and I will set you up!