SDblog

The Senate finally passed their version of the ecconomic stimulus package.  Now it goes to committe to "merge" the thier form of the bill with the Houses form of the bill.  Hopefully this won't take too long and we will have conforming loan limits raised to up to $729,000.  However, in this bill, the limits are only going to be raised through the end of this year.  Perhaps it will be so helpful that they will keep the limits higher for a lot longer.

California has needed this for some time - the conforming limits in Hawaii, Alaska and yes, Guam, have already been higher for a long time.  Many feel that the low limits in California helped cause the financial calamity we are experiencing now - borrowers with "jumbo" loans were forced into short term ARM loans because Jumbo fixed rates were too high.

So as it stands, when the package passes, you will have an 11month window in which to refinance under the new conforming limits.  Don't miss this opportunity!  Call me and get started today!

Jan Farley  858-699-7480 

Finally, an article that explains what has been my position during this whole housing/credit crisis much more succinctly than I can.  He doesn't go as far as I do, blaming much of the mess on the Fed who started raising rates to agressively like they ususally do, trying to stave off contrived inflation caused mainly by oil prices and what we pay at the pump.  But he does explain the mess very well and has some interesting insights as to what the future may hold. 

This is an article by Lou Barnes in the Inman News.....

http://www.inman.com/inmanstories.aspx?ID=66266

THanks, Jan Farley

Harry Reid is pushing a new bill that would include a provision allowing a bankruptcy judge to "cram down" the interest rate on mortgages secured by primary residences.  The possible effects of this provision are being hotly debated - it could increase interest rates on new loans significantly, and it could cause credit to tighten even more than it is now and require larger down payments.  This cause much more damage to the struggling housing market.

I think this is a horrible idea. Bankruptcy would rise to huge levels and would be harmful to unsecured creditors. Bankruptcy is not like it used to be – you most often have commit to completing your Chapter 13 for up to 6 years. Many people don’t really NEED bankruptcy – they just need their mortgage note modified. If bankruptcy is viewed as a good way to get the mortgage modified, people will not educate themselves on if they really need bankruptcy, bankruptcy attorneys will rush them in, and of course clean up on fees. But this is a long term endeavor now, and will impact credit negatively for over 6 years. This is far more detrimental to one’s credit than just letting the house go through foreclosure. Credit can rebound from a foreclosure in sometimes only 2 years.

It just sounds like one more way for the general public to get hosed by attorneys.

Jan Farley

Hey all - many of you know Trish who used to work with Joc and I.  She and her husband and family now live in Virginia, having been transferred by the Marine Corps.  Here is an awesome You Tube video just as an update.

Enjoy!

http://www.youtube.com/watch?v=HUCwMP908nY

San Diego Real Estate update:  The stimulus package was signed last Friday by President bush and we will have new conforming, FHA and VA loan limits by March 14th!  This is great news for all of us - many of you can refinance out of high interest rate loans now at great conforming fixed rates!  With the FHA option, you can also avoid monthly mortgage insurance fees if your loan to value ratio is over 80%!  Lets get started so you can be ready to lock when rates hit the bottom!

Jan Farley

Here we go again.  A big announcement that the top 6 lenders have made an agreement to "pause" the foreclosure process for 30 days for borrowers 90 days delinquent to assess the possibility of modifying the loan or refinancing.

Wow!  a 30 day pause for people 90 days delinquent!  What the heck is that going to do when the borrower have already been calling and begging for the lender to modify the terms of the loan for the past 90 days.  This is just another PR move by these so-called "Top Lenders" who really need to get their acts together, hire more staff, step up to the plate, and get these short sale requests done in a timely manner.  Waiting 30 days for a negoatiator to even be assigned to the request is horrific - what buyer is going to sit around waiting endlessly to see if their offer will be accepted with all the inventory out there?  And that is exactly what is happening.  This stupid PR move with do nothing.

Jan Farley

Are you behind in your mortgage payments?  If so, you may be able to get some help by scheduling an appointment with a HUD counselor.  The HUD counselor will actually get your lender on the phone with you there, and get the lender to tell you what the best course of action is for you and your loan.  This may be the most frank discussion you will ever get with the Lender, who generally comes from a position of power/fear threatening to foreclosure.  Don't hesitate to do this!

Thanks, Jan Farley

We are only about 1 year into the era of the "short sale" in Southern California.  How far have we come in this process?  Well, things are still very slow.  Unfortunately, this is working against EVERYONE involved, including the lenders themselves.

I have an escrow open and submitted all the forms to the lender on January 18.  We have yet to have a negotiator assigned to our case, and I am told it could take up to 30 days with this lender to get someone working with us.  That is horrible performance.  The problem with this is that there is tons of inventory out there, and we have to get the buyer to hang in there with us and not cancel to go try to buy something else.  Of course, most of the inventory in the same price range is also a short sale, so the same thing would likely be encountered. 

This is disheartening and disturbing.  It is causing a continued downward trend in pricing homes for the market.  This is hurting the market, the homeowners, and the lenders themselves.  The lenders need to hire more negotiators - it would actually save them money in the long term.  The longer the home lingers on the market, the lower the price the lender will eventually get.  Very short sighted....

Jan Farley