Posts Tagged ‘mortgage’
Sunday, January 17th, 2010
A great post by seekingalpha.com
History can give us guidance in fixing our real estate crisis.
“Faced with his own foreclosure-nightmare, Julius Caesar came up with a decisive and practical means to cure the solvency crisis which was at the heart of that real estate meltdown. Caesar decreed…that all mortgage interest would be canceled. Thus, all mortgage payments would be credited 100% to principal.”
DHW asks: Do you think interest should be eliminated on existing mortgages?
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Tags: history, Housing, housing crisis, interest, julius caesar, mortgage
Posted in Housing, history, housing bubble, housing crisis, interest, julius caesar, mortgage | 1 Comment »
Wednesday, January 6th, 2010
If you have Chinese drywall and an FHA-insured mortgage, contact HUD at 888-297-8685 regarding special mortgage terms.
From The Miami Herald, Shannon Behnken:
“HOMESTEAD, Fla. – Jan. 5, 2010 – After months of legal wrangling, it appears one of the first lawsuits filed over faulty Chinese drywall is headed to trial in federal court.
Melissa and Jason Harrell of Homestead filed a lawsuit against South Kendall Construction, Palm Holdings, Keys Gate Realty and Banner Supply in March.
The couple moved out of their home, built in 2006, after the entire family experienced breathing problems and headaches, and the coils of their air conditioner corroded and their home smelled of chemicals. They attributed all of the problems to the imported drywall used to build their house.
On Wednesday, the Third District Court of Appeal ruled that Banner Supply had ample opportunity to inspect the Harrells’ home and make an offer to repair it. Attorneys for the supply company did not return phone messages. Banner Supply had argued it had not been given enough time to make a repair offer and avoid litigation. “The courts are not going to be taken in with technical defenses that delay getting to the real heart of the matter,” said Stephen Rosenthal, one of the Harrells’ attorneys.
Earlier, a judge had ruled the Harrells could sue for damages beyond the cost of repairs – they could also sue for the loss of value to their home, the cost of alternate housing and more extensive remediation to their house, from new pipes to new appliances.
“For the Harrells pretty much right now, all the legal barriers have been cleared,” their attorney Alex Rundlet said.
The Harrells’ suit could pave the way for others in the same situation, including thousands of homeowners from around the country whose cases are being handled by a federal court in Louisiana.
Drywall victims learned of other victories this week, too. After merely encouraging lenders to give families with Chinese drywall a break on their mortgages in the past, the U.S. Department of Housing and Urban Development instructed FHA-approved lenders that they must do so this week.
“This is more than encouragement,” HUD spokesman Lemar Wooley said. “It notes instructions and specific guidance for FHA lenders.”
Some families juggling mortgage payments and rent or who are paying for expensive repairs have already slipped into foreclosure or are on the verge.
Federal Housing Administration lenders have been told they are to temporarily suspend mortgage payments for homeowners with the tainted wallboard. Or they should allow borrowers already behind to pay only their monthly mortgage bill for several months, without making back payments. And homeowners should not be charged late fees if they are given these accommodations.
In addition, the agency’s Community Development Block Grant program may offer homeowners money to pay for repair costs.
For most other CDBG programs, people who receive grants cannot earn more than 80 percent of an area’s median income. But a community could decide that doesn’t apply to this situation, said Gloria Shanahan, a spokeswoman for HUD in Miami.
Homeowners would need to contact their city and county governments to see if they have money from the program and if the local government will consider grants for drywall repairs.
For more information about the special mortgage terms for homeowners with Chinese drywall, call the HUD National Servicing Center, 888-297-8685.”
DHW asks: Do you have Chinese drywall? If so, what are you experiencing?
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Tags: chinese drywall, FHA, florida, homestead, Housing, HUD, mortgage, suit
Posted in FHA, HUD, Housing, chinese drywall, florida, homestead, mortgage, suit | 1 Comment »
Tuesday, January 5th, 2010
While keeping your home certainly trumps living on the street with a higher credit score, a loan modification can knock as much as 105 more points off your credit score than a foreclsoure.
According to a published article in the Detroit Free Press, a “loan modification to get a lower mortgage payment and stay in your home could impact your credit score. In some cases, consumers could see credit scores drop by 100 to 150 points.” If you have a home foreclosure, you could see your credit score drop by 45 to 100 points.
DHW asks: Do you think this credit scoring is fair?
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Tags: credit report, credit report score, credit score, foreclosure, loan modification, modification, mortgage, mortgage modification
Posted in credit report, credit report score, credit score, foreclosure, loan modification, modification, mortgage, mortgage modification | 1 Comment »
Monday, November 16th, 2009
During a speech to the National Association of Realtors in San Diego, FHA Commissioner David Stevens said his agency is not headed for the same fate as Fannie Mae, Freddie Mac or the subprime sector. Concerns about the FHA’s financial well being were raised last week when it was revealed in an independent audit that the agency’s funds were below legal guidelines.
The Commissioner sought to minimize these concerns, reporting the agency had $31 billion in capital – an increase of $3.5 billion from a year ago.
Stevens went on to say that the FHA is “the only participant in home financing services in the U.S. economy that hasn’t needed a bailout, hasn’t needed (funds from the government’s Troubled Asset Relief Program), hasn’t needed special assistance and is still completely self-sustaining.”
The AP reports the FHA has insured almost 25 percent of all new loans made in 2009. Eighty-percent of these loans represent first time home buyers.
Stevens rejected comparisons between the FHA and the subprime market. “Nothing could be further from the truth,” he said, stressing the FHA has far more stringent underwriting guidelines for the loans it insures.
As the unemployment rate has risen, so have FHA’s losses. According to the Mortgage Bankers Association, approximately 17 percent of FHA borrowers are at least one payment behind or in foreclosure. This compares with 13 percent for all loans.
The FHA does not make loans. It insures against default, taking much of the risk away from lenders. FHA loans have grown in popularity in recent years as credit markets have tightened up. The agency’s 203K rehab loan is also growing in popularity as more first-time home buyers purchase foreclosures.
DHW asks: Do you think the FHA is at risk of needing a government bailout?
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Tags: 203, 203 k streamline loan, 203 k streamlined, 203 k streamlined loan, 203k, 203k lenders, 203k mortgage, 203k rehab loan, 203k streamline, 203k streamlined, buyers, commissioner, congress, david stevens, employment, fannie mae, FHA, fha 203 k, fha 203 k streamlined mortgages, fha 203k, fha 203k mortgage, fha 203k mortgage loans, fha 203k rehab, fha 203k streamlined mortgage, first time buyers, first time homebuyers, foreclosure, freddie mac, guidelines, home buyers, homebuyers, Housing, housing news, loan, mortgage, national association of realtors, Real Estate, real estate news, realtors, stevens, subprime
Posted in 203k, 203k lenders, 203k mortgage, 203k rehab loan, 203k streamlined, FHA, Housing Article, david stevens, fha 203 k, fha 203k, fha 203k lenders, fha 203k loan, fha 203k mortgage, fha 203k mortgage loans, first time home buyer, first time home buyers, first time homebuyers, foreclosure, freddie mac, homebuyers, realtor, realtors, rehab loan, subprime | 1 Comment »
Saturday, November 14th, 2009
Recovery of the commercial real estate market remains in question as the Moody’s commercial property index dropped 3 percent in October. The index is down over 32 percent from a year ago and over 40 percent from two years ago.
The Mortgage Bankers Association reported loan activity for commercial and multifamily real estate fell 54 percent in the third quarter from a year ago.
DHW asks: Is the commercial real estate market in your area on the decline?
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Posted in commercial, commercial real estate, moodys commercial property index, mortgage bankers association, recovery | 1 Comment »
Thursday, November 12th, 2009
Tags: $6500, $8000, $8000 tax credit, 6500 tax credit, 6500 tax credit extension, 8000 tax credit extension, Builders, buyers, congress, employment, extension, fannie mae, FHA, fha 203 k, fha 203 k streamlined mortgages, fha 203k, fha 203k rehab, fha 203k streamlined mortgage, fha approval, fha approved condo, fha approved condos, fha cash reserves, fha limits for my area, fha limits in my area, fha loan limits, fha reserves, fha's reserve funds, first time buyers, first time homebuyers, foreclosure, freddie mac, guidelines, home buyers, home sales, home seller, home values, homebuyers, Housing, housing credit extension, housing news, housing prices, housing report, lender, loan, mortgage, Obama, President, president barack obama, President Obama, Real Estate, real estate news, reserve funds, Sales, seller, worker home ownership and business assistance act of 2009, worker homeownership and business assistance act of 2009
Posted in FHA, Housing Article, foreclosure, rehab loan | 1 Comment »
Thursday, November 12th, 2009
U.S. foreclosures sank for a third consecutive month in October, down 3% from the previous month. However, many feel this trend will not continue. Foreclosure notices were curtailed in many states due to temporary, legislative intervention. CNBC reported Nevada foreclosures “dropped 26 percent from the previous month because of new legislation requiring mediation before initiating foreclosure proceedings.” Illinois had similar legislation, but foreclosure notices skyrocketed there 56% in October from the previous month.
States leading in foreclosure:
- Nevada
- California
- Florida
- Arizona
- Idaho
DHW asks: Are foreclosures down in your area?
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Posted in Housing Article, foreclosure | No Comments »
Wednesday, November 11th, 2009
In a CNBC interview this morning, Realogy CEO, Richard Smith, called on FHA to increase its minimum required down payment of 3.5%. Mr Smith suggested the ‘risk profile’ will have to change to stave off foreclosures. This argument only perpetuates the myth that those who put less money down are somehow less attached to their home than those who put down a significant amount. Mr Smith should have taken the opportunity to call on the administration and Congress to cure the real problems that cause mortgage delinquencies.
The Urban Institute, a Washington D.C. based think tank, issued a study recently that revealed some interesting, though not surprising, data. Those who put little or no money down tend to be more poor than those who put, say, 20% down. They are also less likely to have health insurance. Someone who has health insurance is more likely to miss less work due to an illness than someone who has no insurance. This is only one example cited in the Institute’s report.
Although many pundits, including Mr Smith, suggest the nation’s recovery is tied to housing, it is not. It is tied to job creation. You cannot have a 10% unemployment rate and expect to have a stabilizing housing market.
Reology is the world’s largest brokerage operator. They own Coldwell Banker, Century 21, Better Homes and Gardens Real Estate and ERA.
DHW asks: Do you think the FHA should increase its minimum required down payment?
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Tags: $6500, $8000, $8000 tax credit, 10 percent, 203 k streamline loan, 203 k streamlined, 203 k streamlined loan, 203k, 203k rehab loan, 203k streamline, 203k streamlined, 3 down payment, 3.5 down payment, 3.5 percent, 3.5%, 6500 tax credit, 6500 tax credit extension, 8000 tax credit extension, barack obama, Builders, buyers, congress, down payment, employment, extension, fannie mae, federal housing administration, FHA, fha 203 k, fha 203 k streamlined mortgages, fha 203k, fha 203k rehab, fha 203k streamlined mortgage, first time buyers, first time homebuyers, foreclosure, freddie mac, guidelines, home buyers, home sales, home seller, home values, homebuyers, Housing, housing credit extension, housing news, housing prices, housing report, lender, loan, mortgage, national association of realtors, Obama, president barack obama, President Obama, realogy, tax credit extension, unemployment, worker home ownership and business assistance act of 2009, worker homeownership and business assistance act of 2009
Posted in 203k, Editorial, FHA, Housing Article, foreclosure, health insurance, realogy | 1 Comment »
Wednesday, November 11th, 2009
The Miami Herald reported the Federal Housing Administration (FHA) is temporarily relaxing underwriting guidelines for some condominium communities. The changes are intended to increase condo sales and put occupants in otherwise vacant units.
DHW asks: Do you agree with the FHA’s decision to relax condo underwriting guidelines?
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Posted in FHA, Housing Article, condo, condo sales, condominium | 1 Comment »
Tuesday, November 10th, 2009
Critics of the Housing Tax Credit were quieted, if only briefly, when the National Association of Realtors (NAR) released data for third quarter home sales. According to the trade group, home sales increased by nearly 6% over this same time last year. Despite the spike in sales, prices have fallen more than 11% during the same period. The U.S. median existing single-family price for the third quarter was $177,900.
Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.
NAR chief economist, Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.
DHW asks: Do you see a bottom to the housing market?
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Posted in Housing Article, home sales, housing tax credit, realtors | 1 Comment »