Sat, February 20th, 2010
A Morsel of Housing Help for California… And an Idea
The Feds finally acknowledged, somewhat, that the housing problem in this country goes much deeper than banks and insurers, and threw a bone this week toward homeowners in the hardest-hit states, including California. (There are five states designated to receive funds.)
Time will tell exactly how much California receives from the allocated funds, or in what manner the funds can be used as approved by the feds. The amount of TARP funds allocated to the homeowners (and perhaps would-be homeowners as well)? $1.5 billion. Total. Not $1.5 billion per desperate state. $1.5 billion for everyone, including our state, which could swallow that paltry amount in minutes with its needs.
There clearly is not enough money allocated in this proposed program to truly repair the loss of equity many homeowners have suffered in their property in relation to their loans on the property. Perhaps some assistance to the banks in approving short sales? Oh, I forgot, they already subsidize the banks by compensating many of them for losses on property.
I would suggest attempting to use funds to draw down principals on loans for homeowners in a short refinance (principal reduction). If this works on a small scale, then a larger version, perhaps with real money, could be implemented next year. Just an idea.
Yes, the Obama camp acknowledged the problem. Just not that it’s a big problem.
Posted by Nick Yonano at 05:52
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Labels: Mortgage Default, foreclosures, housing, housing market, property value, real estate, short sale
Wed, June 10th, 2009
An El Dorado Hills Broker Who Knows His Short Sales
With the next wave of foreclosures coming upon us, it’s important to know who out there is qualified to help with a short sale. Even if you aren’t contemplating this well-utilized option, you probably know someone who is, or should. And it’s great to have names available in case your family member or friend is in need.
One Realtor which I highly recommend when it comes to getting your short sale handled properly, is Paul Norton. Paul is an Intero broker who is well-versed in the latest real estate practices, including short sales and similar transactions. He is an El Dorado Hills resident and also serves the Folsom, Cameron Park, and nearby communities.
Posted by Nick Yonano at 05:38
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Labels: Mortgage Default, Realtor, el dorado hills, folsom, foreclosures, housing market, short sale
Fri, October 3rd, 2008
Short Sales or Foreclosures, and Deeds In Lieu: Which is Best or Worst for My Credit Score?
I was discussing this crazy market the other day with a friend of mine who runs a very solid mortgage firm. His name is Andrew Vierra, and his business is WealthWise Mortgage Planning. He asked me a simple question that I think many people are asking. In fact I hear it more and more these days: What’s worse for your credit, a short sale, a foreclosure, or a deed in lieu of foreclosure? The short answer is a foreclosure. But a deed in lieu of foreclosure can have much the same effect. And a short sale, while it may negatively affect your score, it’s not considered to be nearly as bad. Here’s an article from a good site that helps describe this as well.
Everyone’s situation is different. Some cannot wait for a short sale to possibly occur. Some don’t have the resources to wait it our or to bring in a broker. Others can, and give this option a shot, hoping that they don’t regret the long and tedious process. Others, frustrated by the whole situation, just stop making payments and let the upside-down property go. Your best bet: talk with your agent. Get his or her best advice. Or talk to your mortgage broker or attorney. They see it all day long and may give you a fresh look at your options.
Posted by Nick Yonano at 09:32
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Labels: Mortgage Default, broker, foreclosures, housing market, short sale
Mon, September 8th, 2008
Welcome to The Federal Housing Finance Agency
The financial markets were awakened this Monday morning with some big news: Fannie Mae and Freddie Mac were under the control of the government, and this time it is for real. The conservator is an agency known as the Federal Housing Finance Agency. This newly-formed agency is really there just to run things for now, instill some confidence in the lending market, and make it easier for the government (Treasury Dept.) to buy mortgage-backed securities.
Is this good for the real estate market in general? Yes, I think so. Will it solve all the problems? No way. Nothing will. There are some real underlying credit problems that need to be ironed out, and the housing inventory is just that, inventory. Good ol’ fashioned economics says this takes time.
What amazes me is the negativity of so many people. Take this quote from an analyst, which I found in an MSN article: “It’s not going to reduce foreclosures, it’s not going to shore up the home equity market,” said Dick Bove, an analyst at Ladenburg Thalmann. “I understand that they had to do it . . . but they’re doing it to protect the financial system. In terms of does the homeowner get any benefit from this: absolutely not,” Bove said.
This guy seems to think that since this move doesn’t solve all the problems, why bother? I disagree. Any positive action by the feds will help right now.
Posted by Nick Yonano at 08:32
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Labels: Uncategorized, housing market, real estate
Thu, July 31st, 2008
A Little Housing Help from the Feds
It’s not very much. In fact, it accomplishes very little for most homeowners. But the latest, and I hesitate to say, the greatest, from Pres. Bush and his administration, as well as Congress, is designed to help a few ride this storm out. There are many good summaries out there on the web. One of my favorites is this blog on residential homes and remodeling, where the summary lists the proposed benefits, including the $7,500.00 new home-buyer stimulus. This will help to prop up the saturated lower-end of the market. As for the Fannie Mae and Freddie Mac changes, I’m interested in how the proposed regulations will benefit the Central Valley and northern California. I’ll be following up on that as soon as I know more.
Posted by Nick Yonano at 08:54
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Labels: Uncategorized, housing market
Tue, July 22nd, 2008
Fueling a Slow Housing Market
Check out this video report about the inevitable connection between a slow housing market and high gas prices. My favorite is the custom builder giving away $100 gas cards for 100 consecutive weeks. An aggressive builder that is determined to move past this market. I’m curious as to what the home builders in and around Folsom and El Dorado Hills are offering. I know my wife would love free babysitting.
Posted by Nick Yonano at 05:09
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Labels: Uncategorized, builders, housing market
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