- Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
- You may qualify even if your credit is less than perfect
- Available to both owner occupiers and investors
- Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
- No mortgage insurance*
- No appraisal fees
- Also eligible for HomePath Renovation Mortgage
- HomePath Mortgage financing is available.
Tuesday, July 7, 2009
What don't I understand... Hillary Clinton immediately blamed mortgage brokers for the economic free fall... Those sub-prime loans the mortgage brokers created were responsible for the crash... they stole the equity from poor innocent unsuspecting buyers and homeowners... Little or no down payment, interest only loans, less than perfect credit... They made loans to people who should not have been buying homes... Right... So, please explain the following:
Thursday, July 2, 2009
Let the bloodbath begin!
The vast majority of Toxic Assets, aka Legacy Assets, aka Non-performing Assets, are in fact loans on 1-4 unit residential real estate currently in one stage or another of default and foreclosure.
Read the Housing and Economic Reform (oxymoron) Act and you will find that it authorizes the Secretary of the Treasury to a) acquire these assets and b) dispose of them as he sees fit... As it did when it enabled this crisis years ago, congress has written a law with zero provision for CONGRESSIONAL OVERSIGHT.
Further, without exception, every housing loan modification program in place today is doomed to fail. The very conditions attached to all of them guaranty this fact. i.e. it is now virtually impossible for the tens of millions of self-employed Americans to qualify for ANY real estate loan modification or new purchase loan.
Should these assets be PROPERLY modified... ofttimes the current formula's in place are prescriptions for a second default... they will become performing assets, with no further losses for the lending institutions.
HOWEVER, should they be bundled (as did the RTC) and sold to these private investors at pennies on the dollar, there most like will be a "bloodbath" of new foreclosures. These are delinquent loans, the investor becomes the new note holder, bank if you will, free to accelerate the foreclosure process, and acquire what could amount to over a trillion dollars in residential real estate "on the cheap."
Congress can, and must immediately amend the HERA to prevent this potential debacle.
Residential real estate "lead the way" into this depression (and it is)... it must lead the way back out... I ask you the question, will you set foot in an auto showroom when you don't know if you will own a garage to park it in next week? Ours is a consumer based economy... only a fool would believe that "we the people" will consider spending on anything that isn't a requirement for survival again until the housing crisis has been addressed.
Without loan modification to stem it, we are about to enter another phase of defaults and foreclosures that will last no less than another 18 months to complete... and then an additional 1-2 years, if only that, to clear the inventory... all the while decimating the lives of Americans...
When consumers don't consume store close... the last time that I checked, a vacant retail space pays no rent... enough empty stores in a shopping center and... well why not check in with the bankruptcy courts to see what happens!
As Polonius said to Laertes when he was preparing to leave on a journey, "...to thine own self be true..." Well this is one hell of a journey that congress and Wall Street have taken us on...
it's the foreclosures stupid... it's the foreclosures...
Read the Housing and Economic Reform (oxymoron) Act and you will find that it authorizes the Secretary of the Treasury to a) acquire these assets and b) dispose of them as he sees fit... As it did when it enabled this crisis years ago, congress has written a law with zero provision for CONGRESSIONAL OVERSIGHT.
Further, without exception, every housing loan modification program in place today is doomed to fail. The very conditions attached to all of them guaranty this fact. i.e. it is now virtually impossible for the tens of millions of self-employed Americans to qualify for ANY real estate loan modification or new purchase loan.
Should these assets be PROPERLY modified... ofttimes the current formula's in place are prescriptions for a second default... they will become performing assets, with no further losses for the lending institutions.
HOWEVER, should they be bundled (as did the RTC) and sold to these private investors at pennies on the dollar, there most like will be a "bloodbath" of new foreclosures. These are delinquent loans, the investor becomes the new note holder, bank if you will, free to accelerate the foreclosure process, and acquire what could amount to over a trillion dollars in residential real estate "on the cheap."
Congress can, and must immediately amend the HERA to prevent this potential debacle.
Residential real estate "lead the way" into this depression (and it is)... it must lead the way back out... I ask you the question, will you set foot in an auto showroom when you don't know if you will own a garage to park it in next week? Ours is a consumer based economy... only a fool would believe that "we the people" will consider spending on anything that isn't a requirement for survival again until the housing crisis has been addressed.
Without loan modification to stem it, we are about to enter another phase of defaults and foreclosures that will last no less than another 18 months to complete... and then an additional 1-2 years, if only that, to clear the inventory... all the while decimating the lives of Americans...
When consumers don't consume store close... the last time that I checked, a vacant retail space pays no rent... enough empty stores in a shopping center and... well why not check in with the bankruptcy courts to see what happens!
As Polonius said to Laertes when he was preparing to leave on a journey, "...to thine own self be true..." Well this is one hell of a journey that congress and Wall Street have taken us on...
it's the foreclosures stupid... it's the foreclosures...
Tuesday, June 16, 2009
Go figure!!!
Explain this to me please.... congress and the media blamed the mortgage industry for writing what was called sub-prime financing... to people with feces for credit and little or no cash in the transaction... and then blame mortgage brokers for the entire melt down... and soooooo here we go to the Fannie Mae HomePath web site... seems that they have those REO's to sell off...
http://www.fanniemae.com/homepath/financing/index.jhtml
What am I missing?
http://www.fanniemae.com/
- Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
- You may qualify even if your credit is less than perfect
- Available to both owner occupiers and investors
- Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
- No mortgage insurance*
- No appraisal fees
- Also eligible for HomePath Renovation Mortgage
- HomePath Mortgage financing is available from a variety of lenders...
What am I missing?
The Return of TARP!!
Word has it that many of the recipients of the TARP funds want out of the program and wish to return the money... so the $3 trillion question is... what pray tell will the Cacophony of Conceited Condescending Clueless Clowns of Congress do with those funds... dump them into the general fund and go on another spending spree OR, do the the intelligent, prudent, smart, fiscally responsible thing and instruct Secretary Geithner and Chairman Bernanke to turn off the printing presses... and spend every bogus dollar buying back as much of our new found higher interest rate debt as is feasibly possible...
To do so would stabilize the dollar, increase world wide confidence in the credit worthiness of the United States and signal to the world that we are acting like adults. It would lower interest rates, or at least keep them steady, allowing for lower long term mortgage rates to return; thereby providing a boost to the real estate markets... It would show that we have a handle on this situation, and are willing to control spending... if not... go look up the term run-away inflation in your Funk and Wagnalls...
To do so would stabilize the dollar, increase world wide confidence in the credit worthiness of the United States and signal to the world that we are acting like adults. It would lower interest rates, or at least keep them steady, allowing for lower long term mortgage rates to return; thereby providing a boost to the real estate markets... It would show that we have a handle on this situation, and are willing to control spending... if not... go look up the term run-away inflation in your Funk and Wagnalls...
Friday, June 12, 2009
False Hope
There was a spike in pending real estate sales last moth... the markets are all excited... the end of the depression is at hand... a light at the end of the tunnel... wrong...
Pray tell, how many were NOT either an REO or short sales... how many are NOT being financed by the FHA... should they all closes, how many will have an LTV below 95%... how many of these Buyer's have a FICO score that would pass muster at Fannie or Freddie...how many have borrowed down payments and non-occupant co-borrowers... don't get too excited... in failing to properly address the foreclosure issue, that great Cacophony of Conceited Condescending Clueless Clowns of Congress has made certain that "the markets" can stay all a twitter for no less than another 2 years... too bad that Disneyland isn't still selling "E" tickets...
In funding what can only be described as sub-prime loans, isn't the FHA merely laying the ground for the next real estate crash? ONLY a Realtor, Congress, Wall Street, media and the truly naive' believe that a person losing their home is a marvelous business opportunity...
What am I missing....
Pray tell, how many were NOT either an REO or short sales... how many are NOT being financed by the FHA... should they all closes, how many will have an LTV below 95%... how many of these Buyer's have a FICO score that would pass muster at Fannie or Freddie...how many have borrowed down payments and non-occupant co-borrowers... don't get too excited... in failing to properly address the foreclosure issue, that great Cacophony of Conceited Condescending Clueless Clowns of Congress has made certain that "the markets" can stay all a twitter for no less than another 2 years... too bad that Disneyland isn't still selling "E" tickets...
In funding what can only be described as sub-prime loans, isn't the FHA merely laying the ground for the next real estate crash? ONLY a Realtor, Congress, Wall Street, media and the truly naive' believe that a person losing their home is a marvelous business opportunity...
What am I missing....
Tuesday, June 9, 2009
The silence is deafening
Gasoline prices at the pump are on the rise... the policies of the Fed and treasury have now diven oil prices up some 30% in the past few weeks... compounded by their desire to see a weaker dollar...
Ah, but have you noticed that there hasn't been one word of concern from our cash strapped state and local government's??? The now dollar rise in pump prices equates to an approximately 31% increase in sales tax revenue...
Based on a daily consumption of 1.14 billion gallons of gasoline here in California alone, that amounts an increased daily "take" to the state coffers of $70 million dollars, ... plus any add on sales tax to the counties...
The silence emitting from Sacramento, Albany, Springfield, Harrisburg, Boston, Tallahassee, Juneau, Annapolis, Austin, Atlanta and the rest, is deafening...
I'm not sure just how much longer that we can afford these tax cuts...
Ah, but have you noticed that there hasn't been one word of concern from our cash strapped state and local government's??? The now dollar rise in pump prices equates to an approximately 31% increase in sales tax revenue...
Based on a daily consumption of 1.14 billion gallons of gasoline here in California alone, that amounts an increased daily "take" to the state coffers of $70 million dollars, ... plus any add on sales tax to the counties...
The silence emitting from Sacramento, Albany, Springfield, Harrisburg, Boston, Tallahassee, Juneau, Annapolis, Austin, Atlanta and the rest, is deafening...
I'm not sure just how much longer that we can afford these tax cuts...
Wednesday, June 3, 2009
The silence is deafening...
GM, Ford and Chrysler shedding dealers... and the Administration and congress are mum... "we the people" broke up Ma Bell to increase competition and give the public lower prices... "we the people" did away with deregulation of the airlines to increase competition and give the public lower prices... BOTH actions have proven to have been a mistake... the SEC blocked the merger of Dish and DirectTV to keep the competition and give the public lower prices... the rational being... competition keeps prices low.... What am I missing here....
Fewer dealers = less negotiating for price = higher prices= higher sales and personal property taxes... Now I get it....
Have you noticed the deafening silence from government over the higher gas prices??? The sales (7.75%) tax on a gallon of gas at $2.25 = .$. 171/2 ... and at
$3.00 = $23.1/4 ... a 25% tax increase... Now I get it...
Wall Street and Government love the lowered value of the dollar... making EVERYTHING tied to a barrel of oil more expensive to produce... and will cost more at retail... higher prices = higher sales tax... Now I get it...
A real Forest Gump this one!! With big government now in big business... hmmmm big government.... big business... yeah the same thing... life may be a box of chocolates... but each piece now has a bite taken out....
Fewer dealers = less negotiating for price = higher prices= higher sales and personal property taxes... Now I get it....
Have you noticed the deafening silence from government over the higher gas prices??? The sales (7.75%) tax on a gallon of gas at $2.25 = .$. 171/2 ... and at
$3.00 = $23.1/4 ... a 25% tax increase... Now I get it...
Wall Street and Government love the lowered value of the dollar... making EVERYTHING tied to a barrel of oil more expensive to produce... and will cost more at retail... higher prices = higher sales tax... Now I get it...
A real Forest Gump this one!! With big government now in big business... hmmmm big government.... big business... yeah the same thing... life may be a box of chocolates... but each piece now has a bite taken out....
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