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Market Conditions and Housing prices and possibly helping people hook up with the right financing............................
**THIS EXPLAIN'S OUR DOWN MARKET PERFECTLY**

This is rebloged from an expert in the mortgage industry.

This is the best explanation of this market yet............please read it and these newer laws with appraisals are taking us back 20 years waiting for the apprisal to reach the bank before we can close.......When the market crashed in 1989 that was minor next to this. It took 10 years for the home to gain value and I put the biggest problems between 2001-2007, we all know now subprime, but what about all the gov.......financial regulators and financial people they had to know. We have to follow this through for our children and our grandchildren so they know not to make the same mistakes??

He didn't  like delivering this bad news, and knows I don't like receiving it. He goes on to say:

"At the same time I want to tell you what I see: There are some serious (additional) problems right now, directly affecting real estate. It looks to me like it's going to get a lot worse worse before it gets better. Yet, when doors close, others open - there are resulting opportunities as well (See below). Here are some of the reasons/symptoms:
-
1.5 million homes in foreclosure

  - Appraisal chaos due to new ordering rules and short sales
- High, and still increasing unemployment. Mortgage aid for unemployed

- Collapsing commercial market. Commercial paper falls most ever

- Slow implementation by lenders of loan modification iniatives. Articles
- Lack of ability or willingness to lend. What to do with the Fed
- The Case-Shiller index continues to point towards further declining markets.

What this means in practical terms

- Appraised values as much as 30-40%(!) low, especially for refi's

- Restrictive lending environment, and tightening up more

- Construction loans virtually unavailable (unless hard money)

- Hard money lenders are raising lending criteria and pricing

- Conventional financing maximum is 90%ltv

- PMI requires 680 Fico

- Higher lending standards and erratic pricing for commercial loans

Good news, opportunities

- Investments with good cash on cash returns available

- Affordable price levels - especially for first time home buyers

- First Time Homebuyer tax credit (must close by Nov 30th!)

- Rehab homes (foreclosures) can be bought with 203(k) loans
- FHA loans, including FHA rehab loans (203k), readily available
Fannie Mae REO opps with Prospect Mortgage Homepath (rehab) loans
- Higher Fico's get lower rates
- Rates are not likely to increase (I think)

Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals)
30-day closes (45-days for FHA)
- Condo (conversion) financing services.
Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 95% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property
- Reverse mortgages
- Commercial loans 
____________________________________

"To accomplish great things, we must not only act, but also dream;
not only plan, but also believe."
 

Published Saturday, July 18, 2009 3:53 PM by Kathy Stanavitch QSC,ABR,CDPE

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